Toyota Sues GM Over Plant Closure

Dec. 1, 2010
Toyota said GM's Motors Liquidation Co. should pay $73 million for breach of contract over the closure of the New United Motor Manufacturing Inc. (NUMMI) plant.

Toyota Motor said on Dec. 1 that it has filed a lawsuit with a U.S. court for damages against General Motors' bankruptcy estate over the closure of their joint manufacturing plant in California.

The Japanese firm claims GM's Motors Liquidation Company (MLC) should pay $73 million for breach of contract over the closure of the New United Motor Manufacturing Inc. (NUMMI) plant this year, said Toyota spokesman Paul Nolasco.

GM pulled out of the venture last year as it restructured under government-backed bankruptcy protection. Toyota closed the plant earlier this year after reaching a deal with the plant's 4,500 unionized workers.

"We've been discussing how to pay costs of winding down NUMMI for more than a year, but as the U..S court recommended filing a lawsuit, we filed the suit on November 24," said Nolasco.

Toyota sold the factory to Tesla Motors in May as the Japanese automaker bought a $50 million stake in the U.S. electric vehicle maker.

Separately, NUMMI has also filed a suit against MLC, seeking about $360 million in damages stemming from the dissolution of the joint venture, Nolasco said.

MLC, responsible for the discarded assets of the former auto giant, chose "to end its active participation in NUMMI," which "breached MLC's commitments to NUMMI and sounded its death knell," the statement said.

Copyright Agence France-Presse, 2010

Popular Sponsored Recommendations

Why DataOps may be the key to unlocking the full potential of digital transformation

Nov. 3, 2023
Read the 2023 market survey conducted by IndustryWeek

Discrete and Process Manufacturing 2024 Trends and Outlook for North America

Oct. 29, 2023
Manufacturers are reaping the benefits of automation and cloud-based solutions. Discover what is driving today's industry trends and how they can shape your growth priorities ...

Process Mining For Dummies

Nov. 19, 2023
Here it is. Everything you need to know about process mining in a single book, written in the easy-to-understand, hard-to-forget style that ‘For Dummies’ manages so effortlessly...

Goodridge Boosts Productivity & Saves Costs by Moving to the Cloud!

Dec. 4, 2023
With Infor's cloud solutions, Goodridge has been able to greatly increase overall productivity, cost savings, data visibility, and automation. This case study discusses the many...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!