REPORT: GM pursuing Chrysler for repayment of Two-Mode Hybrid development
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.
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