DETROIT — Fiat Chrysler Automobiles is suing supplier Martinrea International Inc. in a U.S. court, accusing the Canadian supplier of breach of contract and leaving FCA with an engine block shortage and monetary damages that could reach more than $100 million (all figures in USD).
FCA said in the lawsuit filed Monday that the engine component supplier had a contractual obligation to supply 2,604 engine blocks per day and 13,021 per week.
The lawsuit claims the supplier "improperly and unilaterally" reallocated one of its 3,500-ton aluminum die casting machines for another customer, leaving FCA 7,000 engine blocks short each week.
"The insufficient supply will inevitably require FCA US to shut down production of six top-selling vehicle platforms in at least six of its plants," FCA attorney Moheeb Murray said.
The lawsuit was first filed Dec. 13 in Oakland County Circuit Court in Michigan but was transfered to U.S. District Court in Detroit on Monday.