Mercedes-Benz could demand millions of euros to compensate for its tarnished image after a component supplier, Bosch, provided the manufacturer with defective parts.

Mercedes-Benz could demand millions of euros to compensate for its tarnished image after a component supplier, Bosch, provided the manufacturer with defective parts.

The German supplier may already have to pay damages to Mercedes-Benz after the manufacturer had to recall 1,3 million cars recently to fix alternators, batteries and brakes supplied by Bosch.

Mercedes-Benz also had to halt production for several days after it was supplied with faulty diesel fuel pumps by the same components manufacturer, reported.

According to a German magazine, DaimlerChrysler demanded R588 million (US$ 97,9 million) from the supplier in February following the supply of the faulty diesel pumps.

Bosch chairman Franz Fehrenbach said the company could be forced to pay even more compensation than it is contractually-bound to, since Mercedes-Benz’s image has been brought into question.

"We are still negotiating based on agreed terms and conditions. But I guess because it also had to do with image problems, there will be something on top of it," Fehrenbach told the Automotive News Europe Congress in Barcelona.

Fehrenbach said the recent problems were “highly annoying”, but added that quality remained Bosch’s primary priority and that the recent quality issues were being dealt with.

He went on to criticise manufacturers who named their suppliers once parts were found to be defective.

"We develop parts together and we need to deal with the problems together," Fehrenbach said.

Original article from Car