Motors Liquidation Company has announced its intention to sue the BMW company for breach of contractual terms. Motors Liquidation Company, the Americans responsible for the liquidation of assets that remained in the ownership of General Motors Corporation will sue the Germans from BMW for violating the terms of the contract in a deal with the gearbox.
The MLC will require the damages worth approximately 1 billion dollars, but those from GM said it was not yet established the exact amount of losses they have suffered because of reduced orders for gearboxes from GM Powertrains factory in Strasbourg.
According to GM, BMW has signed a contract with GM Powertrains in 2004 for production of 200,000 six-speed manual transmission for the X3. This contract should be held approximately 60% of GM’s Strasbourg plant capacity. Three years later, BMW would be reduced its command to 150,000 units , which has bothered Americans from GM and generated this process. Those from GM offers three versions from Germans at BMW – to buy more than 200,000 gearboxes a year when the automobile market will recover or to compensate the order’s change through other ways.