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Supplier problems bring Mercedes’ hybrid plans to a hault

08/07/2008, 10:55 AM

By Drew Johnson

Although hybrid vehicles are becoming increasingly popular, Mercedes-Benz may have to put the brakes on its ML 450 hybrid SUV plans due to a supplier dispute. Michigan’s Cobasys LLC was slated to supply the batteries for Mercedes’ hybrid SUV, but Cobasys has failed to deliver the goods and now faces a lawsuit filed by the German automaker.

The lawsuit filed by MB claims that Cobasys failed to honor its battery supplying commitment and that it also tried to cover up its current financial situation, according to the Tuscaloosa News. Mercedes also says that Cobasys’ parent companies — Chevron and Energy Conversion Devices Inc. – misrepresented the firm’s funding and even tried to sell Cobasys.

Cobasys has yet to officially respond to the lawsuit, but the company’s CEO claims that Cobasys never agreed to supply the batteries for Mercedes-Benz’ hybrid SUV.

Whatever the case, the dispute has caused Mercedes to miss its June production goal for the ML 450 — which was slated to be the automaker’s first hybrid vehicle — with the fate of the program up in the air. Mercedes co-developed the ML’s battery pack with Cobasys.

This isn’t the first bit of trouble that Cobasys has been in. Earlier this year the battery manufacturer supplied General Motors with faulty battery packs, sparking a recall and the loss of about 9,000 hybrid vehicle sales.

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08/07, 11:00 AM

posted by:

bigp

supplier aremad because they are being cut left and right

08/07, 11:21 AM

posted by:

mayer_ray_nagin

Hell, I can get batteries at Walmart. What’s Mercedes’ problem?

08/07, 11:35 AM

posted by:

A4

dynex AA’s baby

08/07, 12:11 PM

posted by:

ktulu

the world has gone hybrid crazy!

08/07, 12:37 PM

posted by:

Spingood Tanoya

“…bring Mercedes’ hybrid plans to a *hault*”? Isn’t “hault” what happens when you’re too tired to haul?

08/07, 3:56 PM

posted by:

golf4me

Hey, LLN’s got their crackerjack editors back on duty!

This story is funny because Osama was in MI yesterday touting how he was going to make that region the world leader in alternative energy technology and manufacturing…and this company can’t even live up to their contracts. Very fitting for Michigan. I’ll bet their labor costs are through the roof, and if they were smart, they’d move it all to the south, or mekiko.

 
 
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