Wisconsin to Sue Chrysler

The State of Wisconsin will sue Chrysler Corp. in an effort to overturn the auto maker’s decision to close its Kenosha plant, state Atty. Gen. Donald Hanaway said today.

“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 G. Thompson. Chrysler announced 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. The announcement to close the nation’s oldest auto plant brought a swift reaction from the Wisconsin governor, who accused Chrysler Chairman Lee Iacocca of betraying an agreement the company had made to stay in Kenosha for three to five years.