Lear Corp. on Wednesday said a pricing dispute with DaimlerChrysler would be settled out of court.
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Dow Jones said that, in 2005, DaimlerChrysler filed suit against Lear in relation to price hikes Lear demanded from the auto maker on parts that Lear had previously agreed to supply. Lear reportedly had said price increases were being forced upon it by its lower-tier suppliers, but DaimlerChrysler insisted it had a prior contract with Lear that did not allow for the price rise demands.
During a conference call to discuss Lear’s fourth-quarter earnings, Lear vice chairman Jim Vandenberghe told Dow Jones that Lear and DaimlerChrysler agreed to resolve the dispute out of court – the suit was scheduled to go before an Oakland County court in Michigan next month.
“We are still discussing some details,” DaimlerChrysler spokesman Markus Mainka told Dow Jones Newswires on Wednesday. “We are confident we don’t need legal action.”
Mainka reportedly said Lear had been threatening parts supply disruption if it did not receive price increases. He declined to disclose terms of the agreement with Lear, the news agency noted.
