GM sues Indy 500-winning race team for $720K

[CART License]

General Motors Corp. sued Team Cheever, an IRL IndyCar Series team, in U.S. District Court in Detroit because the team failed to pay $721,000 -- the outstanding balance on a leased Chevy Indy V8 engine used during the 2004 season, GM said. Cheever Racing agreed to pay $1.4 million for the leased engine in four installments, the suit said. Cheever made the first payment for $350,000 in January 2004 and was credited by GM because the company owed the racing team for testing. The team never made the remaining payments, but the team used the engine during the entire IRL season, GM said. GM said the team's owner, Eddie Cheever Jr., was personally involved in negotiating the lease. Cheever started the team in 1997 and has primarily competed in the IRL IndyCar Series. Indianapolis-based Cheever Racing has won five IndyCar Series races, including the Indianapolis 500 in 1998, and four pole positions. The team twice finished third in the IndyCar Series championship in 1997 and 2000, and won two Indy 500 Rookie-of-the-Year titles. In a court filing on Tuesday, the team said it would respond to GM's lawsuit by May 1. A Detroit attorney for Team Cheever, James DeLine, said Tuesday the company "dispute the allegations and we will be filling a response." GM also seeks attorneys fees' and interest on the debt.

Link (http://info.detnews.com/autosblog/index.cfm?blogid=62)

[Tony George]

I'll bet just like in his racing career, underacheever will lose! :gomer: :laugh:

[eiregosod]

too funny

[pchall]

Cheever probably thought GM Motorsports would just stick it on Tony's tab.

[NismoZ]

Well, if FTG doesn't help him out, which he won't in light of a merger, Cheever leaves once and for all to Rolex. Huh, GM and Team Eddie, both going bankrupt.

[Wally]

So we can now add deadbeat to 'the mouths" long list.......... :shakehead