Daimler Says It May Have To Cancel ML450 Over Battery Dispute

Daimler AG says it may have to cancel or delay the introduction of a Mercedes-Benz hybrid SUV due to a legal dispute with Cobasys, the chosen battery supplier for the project. The suit, filed by Daimler in US Federal court in Alabama - the site of one of the company's US production facilities - says that Cobasys, a division of Chevron, isn't fulfilling its commitment to produce the battery packs for the Mercedes-Benz ML450.

Daimler asserts that Cobasys is on the block, but its owners have not disclosed that to Mercedes-Benz, in violation of the agreement between the two companies. The suit also charges that Daimler will not be able to bring the SUV to market on time if Cobasys doesn't produce the batteries.

The other options for Daimler include locating a new supplier, or developing the battery technology on its own. Those routes would require Daimler to re-engineer certain parts of the vehicle, which the company had planned to deliver to its dealers in June 2009. Daimler also estimates that the vehicle program could be delayed until 2015, if it isn't forced to cancel the vehicle outright.

Source: MS-NBC