In early 1985, nearly two years before the end of the agreement, the management of the General Appliance Corporation decided that it would not extend the agreement when it expired, but that it would expand the facilities of the Gear and Transmission Division enough to produce all the company’s requirements. Accordingly, in March 1985, the Thorndike Machining Corporation was notified that beginning January 1, 1987, the General Appliance Corporation would manufacture all its own transmissions and, consequently, would not renew the current agreement.