Old GM Sues BMW Over $26M Transmission Deal

Law360, New York (January 26, 2010, 1:23 PM EST) -- Motors Liquidation Co., the liquidating remnant of General Motors Corp., has filed suit against Bayerische Motoren Werke Aktiengesellschaft, alleging the German car company reneged on a valuable contract to purchase at least 1.9 million transmissions.

The adversary complaint, filed Monday in the U.S. Bankruptcy Court for the Southern District of New York, claims BMW has openly refused to comply with its purchase obligations under the €19 million, or roughly $26 million, contract and jumped to another transmission supplier without justification.

In 2004 BMW entered a contract...
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