Toyota Sues Old GM for Damages Related to Plant Closure

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Toyota (NYSE:TM) is reportedly suing the former General Motors’ (NYSE:GM) bankruptcy group for $73 million regarding a production halt at their now-closed joint factory.

The Japanese automaker believes Motors Liquidation, the company charged with discarding GM’s bankrupt assets, should pay the damages to cover research and development costs lost during the plant’s closure, according to media reports.

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The two auto giants had been producing the Pontiac Vibe at their New United Motor Manufacturing joint venture plant in California, however GM stopped production of the model in August 2009, a few months before filing for Chapter 11.

The plant was eventually closed, resulting in 4,700 layoffs, until it was bought up in May by Tesla Motors (NASDAQ:TSLA) for about $42 million.

Earlier this week, Japan’s top automaker said it would seek $365 million in damages old GM’s breach of contract.

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