GM Sues JTEKT Supplier for $30M

It seems that General Motors is set on getting some money back from JTEKT North America Inc, a supplier which caused GM to lose more than $30 million with fixing problems in the steering systems of the Chevrolet Cobalt, Pursuit, G5, HHR and other cars, starting with the 2005 model year. Worried customers have reported to their GM dealer and complained about unusual noises and rattles. The verdict was damage to the steering column under certain condition.

Reports indicate that Cobalt is one of GM’s best selling cars. The company sold 90,940 Cobalts through October, so "GM's damages are expected to continue to increase as additional warranty claims are made," said the automaker's lawyer.

On the other side, "JTEKT contends the components all met the specifications and testing requirements that GM gave it," said Bob Haddad, a lawyer for the supplier. "The issues do not affect the operator's ability to control the vehicle. This is a noise issue."

Business between the two companies are not at risk, as GM requested some changes to the parts, and things are going good at the moment. JTEKT continues to provide steering assemblies, Haddad said Monday. Even when asked, GM did not say if this is considered a safety issue or not, as spokesman Alan Adler had no immediate comment. This information could not be found in the court papers either, detnews.com reported.

This lawsuit was filed in August in Macomb County Circuit Court, amended there in October and moved Nov. 17 to federal court in Detroit.