Daimler may have to cancel hybrid SUV

Mercedes Benz Vision GLK Bluetec Hybrid Concept

FRANKFURT - Daimler may have to cancel or delay plans to launch a hybrid SUV due to a legal dispute with Cobasys, the company that is to provide battery packs for the car, Birmingham News reported, citing a lawsuit Daimler's Mercedes-Benz unit filed in a Birmingham federal court in the U.S. state of Alabama.



Cobasys, which has ties to Chevron, is refusing to fulfill its commitment to produce the battery pack, the newspaper said, citing the lawsuit.

Mercedes alleges that the owners of Cobasys have been seeking to sell the company, without telling Mercedes about it, it said.

"Without a reliable source for this critical part, (Mercedes) will be unable to produce the hybrid vehicle in accordance with its scheduled launch date, and will likely be forced to either cancel the vehicle entirely, or delay the launch for an extended period in order to identify and develop a substitute battery, and to redesign other portions of the vehicle to accommodate it," the newspaper cited the filing as saying.

Daimler earlier this year announced plans to launch the ML450 hybrid SUV, and it aims to start selling the car in June 2009, the newspaper said.

Daimler makes Mercedes cars in a factory in Vance, Alabama.

[Source : Thomson Financial via Automotive News Europe]