Battery Industry: Does it pay to invest in batteries? Message Board

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Gold/Mining/Energy : Battery Industry: Does it pay to invest in batteries?

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From: Sam Citron	8/19/2008 10:53:48 AM
	of 18

Coping with the rising cost of lead in batteries: Chrysler Sues Battery Supplier [WSJ] By JEFF BENNETT August 19, 2008; Page B4 Chrysler LLC has filed a lawsuit in a Michigan court alleging supplier Johnson Controls Inc. charged inflated prices for batteries. The suit, filed Aug. 14 in the Oakland County circuit court, is the latest sign of rising tension between Chrysler and parts suppliers since the auto maker was acquired by private-investment firm Cerberus Capital Management LP just over a year ago. Earlier this month axle maker Dana Holding Corp. asked a bankruptcy court to allow it to drop its contracts with Chrysler, saying its business with Chrysler is unprofitable. Earlier this year, Chrysler attempted to pull its tooling and machines from plants owned by Plastech Engineered Products Inc., a move that prompted Plastech to file for bankruptcy protection. Chrysler Chief Executive Robert Nardelli has pushed the company to slash costs and brought in a new purchasing chief, John Campi, who has advocated having more parts made in India and other countries where costs are lower. At one point, Chrysler looked into buying batteries from India instead of JCI, people familiar with the matter said. Some suppliers have chafed at Chrysler's attempts to seek further cost cuts and are concerned about seeking additional business from Chrysler because the company's vehicle sales are falling and they are uncertain about its future. In the suit, which seeks more than $15 million in damages, Chrysler alleged JCI has charged Chrysler for more lead that it actually put into batteries. It alleges JCI's actions were "systematic and deliberate." A JCI spokeswoman said the company doesn't comment on pending lawsuits.

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