Toyota seeking $73 million over California plant closure from old GM

Article by Christian A., on December 2, 2010

Toyota Motor Corp. says it lodged a lawsuit against Motors Liquidation Co., the firm responsible for the discarded assets of the former General Motors Corp. The suit seeks $73 million in damages for the closure of their joint factory.

Toyota is claiming the award to cover development and research costs that it claims to have stemmed from a breach of contract by Motors Liquidation when their California facility, New United Motor Manufacturing Inc. (Nummi) was closed earlier in 2010.

Toyota spokesman Keisuke Kirimoto says that it's part of the process of winding down the Nummi venture.

As part of its bankruptcy restructuring, GM (n/k/a General Motors Co.) left the venture in 2009, from which GM has emerged and followed with the world's largest initial public offering at $23.1 billion.

Nummi, the last major auto factory on the U.S. west coast, was eventually closed and it laid off 4,700 workers to trim costs as demand for cars declined amid a global recession.

Toyota, in May 2010, sold Nummi to electric car partner Tesla Motors Inc. for about $42 million. The deal includes 207 acres (about 55 percent of the land at the site) and does not include manufacturing equipment. [via autonews - sub. required]

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