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GM-Goodyear Battle Goes to Fed Court

(Akron/Tire Review) General Motors Corp.’s lawsuit against Goodyear Tire & Rubber Co. has been moved to federal court.

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The suit claims Goodyear threatened to stop deliveries of OE tires to GM plants after being rebuffed for a price increase.

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The suit started in Macomb County (Mich.) Circuit Court and was moved to U.S. District Court in Detroit. GM claims Goodyear sought millions of dollars in increases – an amount later revised – to continue tire deliveries. GM, according to news reports, agreed to pay the lower amount – believed to be $15 million – in order to maintain its production schedule.

GM, in the suit, seeks return of the extra money, and said the increase was not part of its current contract with the tire company.

"Goodyear is disappointed that GM has chosen this course of action," Goodyear spokesman Ed Markey told the Detroit Free Press. "We continue to believe that the complaint is unfounded, and we will defend ourselves in court."

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