REPORT: GM pursuing Chrysler for repayment of Two-Mode Hybrid development
by Jeremy Korzeniewski on Jun 23rd 2009 at 7:28PM 
Our friends at PickupTrucks.com are reporting that General Motors has filed documents in court in an attempt to get "New" Chrysler to honor its full pre-bankruptcy debt of $531,275 (of which Chrysler has so far only agreed to pay back about a third) for work on the sophisticated Two-Mode hybrid powertrain that was jointly developed by the two American automakers along with Daimler and BMW.
Chrysler and General Motors have both filed for Chapter 11 protection from creditors, which allows the automakers to renegotiate – or in many cases completely cancel – past contracts that are no longer desirable. It seems that Chrysler's contract with The General, which is supplying the hybrid transmissions to Chrysler, has yet to be picked up by New Chrysler.
This case is a bit more intriguing than most – such as Chrysler's canceled contract with Cummins for light-duty diesel engines for the Ram pickup – as it pits General Motors across the courtroom and on the other side of bankruptcy negotiations. We suspect that New Chrysler may be keen to pick up its old tab since the automaker is still planning to use the Two-Mode Hybrid technology for future vehicles, starting with the 2010 Dodge Ram, though possibly with more favorable terms.
[Source: PickupTrucks.com]
Reader Comments (Page 1 of 3)
first1 7:40PM (6/23/2009)
Isn't it pursuing...?
Reply
Taglane 8:02PM (6/23/2009)
Nope. 'Persuing' actually exists, even though Pursuing means technically the same thing.
O_o
Taglane 8:04PM (6/23/2009)
I've seen some people use it, and recently I tried to correct someone on it and I guess I got told. although i cant find it in a a dictionary. anyway back to the post lol.
Monkey 8:38PM (6/23/2009)
@first 1 - Yes, it should read 'pursuing'
@Taglane - No, it doesn't mean the same as 'pursuing', in fact the word 'persuing' doesn't exist at all.
some1 9:18PM (6/23/2009)
wow, GM expects to get its money from a bankrupt automaker, when they themselves are denying people their money that they need to pay...
a bit ironic? and hypocritical if you ask me...
i personally hope GM gets screwed in this deal... serves em right, if the obama administration goonies play in favor for GM, i will be further disappointed, although sadly, i wont be surprised.
Mr.Oak 9:51PM (6/23/2009)
They don't have to pay, They just won't get to use the technology. Here's the difference, contracts for goods and services already delivered to the OLD Chrysler, are protected by bankruptcy laws. A contract signed before bankruptcy, but no goods have delivered. If Chrysler wants the goods, or the 2-mode technology, to be used by the NEW Chrysler, these suckers had better pay up.
BoxerFanatic 7:41PM (6/23/2009)
Wow.
Government motors pursuing kind-of government motors, partially off-loaded overseas.
This should be interesting.
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Yaroukh 8:13PM (6/23/2009)
It just sounds funny to me, they expect old debts to be honored while turning back to old product liability lawsuits.
mike 7:31AM (6/24/2009)
Pox on both their houses!
I bet the lawyers fees will exceed what the amount due totals.
Tourian 10:05AM (6/24/2009)
Right, because if they didn't go after the money and word got out, you people criticising them now would be applauding them right? No, you'd be complaining still because they are wasting taxpayer money by not going over debts that are owed to them.
Just admit you are going to bitch and moan through this entire process that is a painful process that isn't going to be perfect and rosy no matter what they do.
Todd 7:43PM (6/23/2009)
While the dinosaurs fight for who gets the better seat for the meteor impact, Tesla got its $500,000,000.00 government loan ( !!! ):
http://www.autobloggreen.com/2009/06/23/tesla-gets-465-in-loans-from-the-doe-to-build-model-s-ev-power/
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UCJR 8:20PM (6/23/2009)
Just like global warming and climate change, if the people cheerleading Tesla Motors weren't such blowhards, I would be much more apt to believe their claims.
why not the LS2LS7? 11:04PM (6/23/2009)
That's great. Like we didn't throw enough money away yet.
Yaroukh 8:09PM (6/23/2009)
Dear New GM
That was between The Old GM and The Old Chrysler.
Sincerely yours
New Chrysler
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RandomNess 8:13PM (6/23/2009)
Exactly, if the government let them walk away from lemom law complaints then I doubt this will get them anywhere.
Mr.Oak 8:33AM (6/24/2009)
Yeah, but New Chrysler wants the technology. New Chrysler has to pay.
RayJ 8:18PM (6/23/2009)
Honestly GM really developed the technology from its use in buses and tried to get other to help them with legacy cost in bringing it to market. Still if you can get out of past contract you really can't hold other to theirs. However since Chrysler is going to want more of these from GM yea they will be paying up.
Now you all that keep calling them GM motors that really isn't fair stop listening to Rush please. Half of this country’s financial market has taken cash and as long as they PAY IT BACK who cares stop repeating what you see on Fox NEWS.
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Yaroukh 8:22PM (6/23/2009)
Well, the "paying-it-back" part is actually the issue with GM.
As far as I know they will pay back only some $6-7b of those $50b.
alex 8:43PM (6/23/2009)
Yaroukh, they aren't paying it back because the govt has swapped their debt for equity. Imagine if you owned a company and you needed funding. I could give you $20 million for a 50% share of ownership in your company. You don't pay me that $20 million back... but I own 50% of your company's shares which I can sell to get my money back.
So in short, the govt gets their money back when they sell their ownership in GM. How much will they get? depends on how much GM is worth when they sell. They could lose money, break even or even make money.
wally 8:59PM (6/23/2009)
Neither GM or Chrysler will pay back one penny of the taxpayer money they got before bankruptcy or money while in bankruptcy!! They're only on the hook for loans after exiting bankruptcy!!!