From Tire Review Staff & Wire Reports

The Macomb Daily (MI) has reported that General Motors has sued Goodyear Tire & Rubber Co., accusing the Akron, OH, tiremaker of withholding tires in an OE tire pricing dispute.

The suit, said the newspaper, was filed in Macomb County Circuit Court in Michigan.

According to the paper, the lawsuit claims Goodyear recently stopped delivering OE tires for certain GM vehicles. The disagreement apparently stems from Goodyear’s efforts to increase OE contract pricing due to heavy raw material cost burdens.

"Goodyear's refusal to ship the product will result in catastrophic, irreparable losses to GM, prevent the startup of the new Lansing Delta Township assembly plant, the shutdown of one production line at the Flint Assembly plant, layoffs of employees at the plants, a ripple effect on GM dealers and other suppliers, lost profits on the sales of GM products and damage to GM's reputation and goodwill," GM says in the lawsuit, according to the paper.

A Goodyear spokesman told the newspaper that the company had read the complaint. In a prepared statement to the newspaper, Goodyear said: "Goodyear believes that the complaint is unfounded and mischaracterizes the current relationship between Goodyear and General Motors. Goodyear is supplying tires to General Motors on valid contracts. This disagreement is limited in nature, and Goodyear is within its rights relating to all actions taken. We are disappointed General Motors has chosen this response, and we are currently in discussions, remaining hopeful the matter will be resolved amicably."

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