Delay for Mercedes’ First Hybrid

In January, at the North American International Auto Show in Detroit, Mercedes-Benz announced that it would start building its first hybrid vehicle, the ML-450 SUV in June. But a lawsuit filed in Atlanta recently says the battery supplier didn’t hold up its end of the bargain. Production didn’t get off the ground in June, and may never happen, according to M-B.

Battery manufacturer Cobasys is accused of refusing to honor its agreement to supply the electric power source for the hybrid and of misrepresenting its finances to M-B, according to reporting done by the Tuscaloosa News. The German automaker was slated to begin production of the M-Class at a plant in Georgia this summer, but it says there’s no alternative supplier it can use to get the batteries it needs. For its part, Cobasys says it never agreed to produce the battery pack.

If you’re looking for a winner in this post, it may be GM, whose huge Chevy Tahoe Hybrid currently has a cash bonus of up to $6,000 on 2008 models. GM also builds the Saturn Vue Hybrid, a smaller SUV similar in size to the so-popular-its-hard-to-find Ford Escape Hybrid and the M-Class.