NUMMI Sues “Old GM”
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Despite the General Motors bankruptcy happening over one year ago, many issues are still haunting the company. The latest happens to be coming from the Toyota/GM joint venture, known as New United Motors Manufacturing Inc. (NUMMI) and its sewing GM’s bankruptcy estate, known as Motors Liquidation Co. (a.k.a. “Old GM”) for refusing to pay its share of the cost needed to close the NUMMI plant.
According to the Wall Street Journal, Motors Liquidation Co. is supposed to be accountable for $185 million related to the early cancellation of the Pontiac Vibe, which was supposed to be produced through 2012. Another $180 should have also been shelled out to aid in the wind-down costs of the Fremont, CA-based plant.
NUMMI cannot sue General Motors itself because the 50% ownership of the plant that the company once had was not an asset that was transferred through the bankruptcy.
In case your wondering whether or not Toyota payed what they’re responsible for, they did.
Source: The Wall Street Journal
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