DaimlerChrysler’s Chrysler Group reportedly has sued insurers for refusing to cover losses the company sustained during the 2003 electricity blackout.
Go deeper with GlobalData
The power cut idled 14 of Chrysler’s 31 North American plants, primarily in southeast Michigan and Ontario, the Associated Press (AP) said. Chrysler reportedly said in the lawsuit it suffered $US33.1 million in damages as a result, though spokesman Mike Aberlich told the news agency the exact figure is still being determined.
The automaker has also said it’s entitled to 12% interest, about $4 million, AP added.
The report said the blackout cost Chrysler about 10,000 vehicles and forced it to scrap about 1,000 while many workers at all three Michigan car makers didn’t report for work the day after the blackout.
AP said General Motors closed 19 plants and three parts warehouses, affecting 47,000 workers, while Ford shut 23 of its 44 North American plants.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataGM spokeswoman Brenda Rios told the Associated Press the company didn’t file an insurance claim related to the blackout and would not estimate the company’s losses while Ford spokeswoman Kathleen Vokes reportedly said the company filed no lawsuits related to the blackout, but declined to discuss whether it had filed an insurance claim.
