Toyota sues GM over plant closure

Toyota Motors has filed a law suit for damages against General Motors Co.'s bankruptcy estate over the closure of their joint manufacturing plant in California.

In the suit filed with the U.S. Bankruptcy Court, Toyota is demanding that General Motors Corp, commonly known as old GM, pay $73.8 million for breach of contract over the closing of New United Motor Manufacturing Inc, a fifty-fifty joint venture known as NUMMI, the officials said.

We've been discussing how to pay costs of winding down NUMMI for more than a year, but as the US court recommended us to file a lawsuit, we filed the suit on November 24, said Toyota spokesman Paul Nolasco.

The plant was closed in April as Toyota found it difficult to continue running operations there by it after GM pulled out of the joint venture.

NUMMI was closed in April as GM pulled out of the joint venture as a result of its bankruptcy filing in June 2009. Toyota also claims in the suit that the costs associated with the plant's closing were greater than expected, according to the officials.

The U.S. media reported that NUMMI has also filed a suit against old GM, seeking $365 million in damages stemming from the dissolution of the joint venture.