GM seeking full payment from Chrysler for two-mode-hybrid system

Dodge Ram 1500

During Chrysler’s bankruptcy process, the Auburn Hills automaker was formed into two groups: Old Chrysler, which would keep all the bad assets and New Chrysler, which would keep all of the best assets to form a new company called Chrysler Group LLC.

Last week it was reported that the New Chrysler disclosed the termination of its diesel deal with Cummins as a part of a group of supplier rejections filed Wednesday in U.S. Bankruptcy Court. The termination cancelled an upcoming Dodge Ram diesel variant. Cummins said that it was okay with the move made by Chrysler and was prepared for the automaker to cancel the contract.

Well, General Motors isn’t taking Chrysler ending product-related contracts very well. Apparently, GM is asking Chrysler for full payment of the development and production costs related to the Two-Mode-Hybrid system that the two companies co-developed for the 2010 Dodge Ram 1500 Hybrid.

GM’s bankruptcy court filings say Chrysler has promised $173,477 to settle $531,275 in costs associated with the Tw0-Mode-Hybrid system.

While GM said it couldn’t comment on pending legislations, a source told PickupTrucks.com that the New Chrysler is hoping to renegotiate many pre-bankruptcy production contracts and the Two-Mode-Hybrid system is one of them

– By: Omar Rana

Source: PickupTrucks