US Auto Industry: It’s Getting Desperate Out There

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It’s a case of who is suing who, and over what? Chrysler is suing Johnson Controls over alleged fraud in the case of fictitious weight data concerning lead in the batteries sold to Chrysler. Dana, an auto supplier that recently emerged from bankruptcy, announced another round of layoffs just after it filed suit against Chrysler over contract terms due to raw materials cost. A few months back, Chrysler filed a request with a federal bankruptcy judge to break a supply deal with Plastech Engineered Products. As one would expect, as these companies teeter on the brink of irrelevance and insolvency, desperation is becoming the norm and the ugly is only going to get uglier.

6:05 am on August 20, 2008