MADISON, Wis. — The state of Wisconsin will sue Chrysler Corp. in an effort to overturn the auto maker's decision to close its Kenosha, Wis., plant, State Atty. Gen. Donald Hanaway said Tuesday.
"Chrysler made a legally enforceable agreement with the state of Wisconsin to build automobiles in Kenosha. We therefore recommend a lawsuit be commenced to enforce that agreement," Hanaway wrote in a letter to Gov. Tommy Thompson. The contents of the letter were released at a news conference here.
Chrysler announced on Jan. 27 that it would close most of the former American Motors Corp. plant, throwing all but 1,000 of its 6,500 employees out of work. Chrysler purchased AMC for $2 billion last August.
In a prepared statement issued Tuesday, the car maker said Wisconsin had no legal grounds to sue. "As to their legal claims, our attorneys have come to the opposite conclusion, the state does not have a case," the Chrysler statement said.