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

In a case that's sure to light up our own comments section along with untold numbers of message boards across the web, our friends at 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.

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