GM Files Documents In Court: New Chrysler to honor pre-bankruptcy debt

It is being reported that General Motors has filed documents in court against New Chrysler; GM hopes that they will force Chrysler into honoring its full pre-bankruptcy debt of $531,275. As yet the company has only agreed to pay back a third for work that was done on the Two-Mode hybrid powertrain.

GM, Chrysler, BMW and Daimler developed this sophisticated powertrain jointly. As we know both Chrysler and General Motors filed for Chapter 11 bankruptcy protection, this allows both companies to renegotiate or even cancel past contracts that they do not find desirable any longer.

It seems that New Chrysler is yet to pick up the contract that old Chrysler had with GM, for supplying hybrid transmissions to them. Chrysler has also cancelled a contract with Cummins for supplying light-duty diesel engines for the Ram pickup.

PickupTrucks.com expects that New Chrysler will have to pick up the tab, as they still plan to use the Two-Mode Hybrid technology for use in its 2010 Dodge Ram, and other future vehicles.

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