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.
