Chrysler is reported to have gone to court to force interiors supplier Lear to continue shipping parts because a disruption would shut assembly lines in four countries.
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According to US publication Automotive News, a price dispute between Chrysler and Lear threatens at least 12 car and truck assembly lines in North America and Europe. In a suit Chrysler filed late on Thursday, (1 December) in Michigan, the automaker was seeking a temporary restraining order.
The report said the suit claimed a parts supply disruption would halt assembly at plants in the United States, Mexico, Canada and Austria within two days – Lear is the sole supplier of interior trim parts for the affected vehicle lines of cars, minivans and light trucks.
Lear spokeswoman Andrea Puchalsky told Automotive News that Lear and its suppliers face sharply higher raw material prices, “but commercial discussions with Chrysler have not been successful to date. That leads us to where we are today.”
The newspaper noted that automakers resist parts price rises and added that Chrysler’s suit alleges that it will be forced to lay off thousands of employees if Lear does not honour its contracts to supply interior trim parts.
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By GlobalDataThe automaker reportedly said in its suit that Lear had warned that shipments could end any time after Wednesday 30 November if its demands were not met.
According to the suit, Lear is seeking major price increases or surcharges, Automotive News added.
