GM Wants Chrysler to Pay for Two-Mode Hybrid

American manufacturer GM is said to pursue legal action against its former Detroit Three competitor, Chrysler, on the grounds that the latter has not honored its obligations regarding the development and production costs of the two-mode hybrid powertrain. According to a report by pickuptrucks.com, GM, being Chrysler's transmission supplier for the future Dodge Ram 1500 Hybrid, is supposed to have filed documents to make Chrysler pay its debts.

According to the filing, GM states that Chrysler promised $173,477 to settle $531,275 in costs associated with the deal between the two. GM took this court of action due to the fact that Chrysler has assigned all production costs, including the Two-Mode Hybrid contract, to the Old Chrysler. This would mean that Chrysler will try to renegotiate the pre-bankruptcy contracts, then transfer them, under more favorable terms, to the new Chrysler.

GM has declined to comment on the matter, but did leave room for interpretation. “We can’t comment about this matter. We don’t comment on pending litigation,” Brian Corbett, GM spokesman was quoted as saying by pickuptrucks.com.

Last week, Chrysler voided the contract it had with Cummins Inc. for the development of a diesel engine expected to come to the Dodge Ram truck in 2010. Should GM not accept the new contract, Chrysler may have a hard time developing the next Ram.

According to Bryan Zvibleman, Chrysler spokesman, the Dodge Ram will come next year, most likely fitted with a two-mode hybrid powertrain. As for the diesel engine, the spokesman told the source the company will "continue to explore all types of propulsion options.”