GM sues steering column supplier
Business Law
General Motors Co. has sued a supplier over problems with steering columns that have so far cost the automaker more than $30 million to fix.
The Detroit automaker is seeking damages from JTEKT North America Inc. and subsidiary JTEKT Automotive Virginia Inc. for problems associated with steering products used in the Chevrolet Cobalt and other GM vehicles since 2005.
GM claims the steering columns "had excessive gear backlash, thereby causing the columns to rattle under certain driving conditions."
Problems with the parts resulted in an "unexpectedly high number" of warranty claims and complaints about "unusual rattles, 'clunks' or other noises emanating from the steering assemblies in their vehicles," GM alleges in the lawsuit, originally filed in Macomb County Circuit Court but moved last week to federal court in Detroit.
While the problem has already cost GM more than $30 million, the automaker said it expects the bill will rise as GM customers file additional warranty claims.
Related listings
-
Court sides with Boeing on $1.1B contract
Business Law 11/18/2009A federal court has reversed a ruling that overturned Boeing Co.’s $1.1 billion contract for maintenance of an Air Force refueling tanker jet.The U.S. Court of Appeals for the Federal Circuit’s ruling Tuesday overturns a 2008 decision by the U.S. Cou...
-
PepsiCo learns a $1.26 billion lesson over misplaced letter
Business Law 10/29/2009It's an expensive lesson on the importance of reading your mail.A Wisconsin judge has ordered PepsiCo Inc to pay $1.26 billion to two men who said it stole their idea to sell purified water after a secretary mislaid a document alerting the world's No...
-
Deal proposed to Lehman Brothers Europe creditors
Business Law 10/05/2009The administrators of Lehman Brothers' assets in Europe said Monday that they may seek a direct agreement with hedge funds and other creditors to return money tied up since the collapse of the parent company as an alternative to a court-sanctioned se...
New York Commercial Litigation Law Firm - Woods Lonergan PLLC
Founded in 1993 by Managing Partner James F. Woods, Woods Lonergan PLLC has built a strong reputation as a resourceful and industrious firm that provides clients with clear, concise, and straightforward answers to their most challenging legal issues. Partner Lawrence R. Lonergan, who joined the firm in 2008, has been a friend and colleague to Mr. Woods for over 40 years and shares the same business philosophy. Woods Lonergan PLLC’s collective experience and expertise enables the firm to expeditiously and effectively analyze the increasing challenges clients face in an evolving business and legal world, in many instances, avoiding unnecessary time and expense to our clients. Our mission is simple: provide cutting-edge expertise and sound advice in select areas of the law for corporate and business clients. We thrive on providing each client with personalized attention, forceful representation, and a collaborative team effort that embraces collective knowledge.