Garry Rogers Motorsport will take legal action against Volvo to ensure the team can continue to race the two S60s in the Supercars championship next season.
Volvo's head office in Sweden announced in May it would pull its funding and support of the Supercars programme at the end of the 2016 season. Rogers has been trying to speak to Volvo to work out an arrangement for the team to keep the existing cars to race next year.
Volvo's racing partner Cyan, who supplies the engines to GRM, has said they intend to bring the engines and cars back to Sweden once this season is completed.
Rogers despite efforts to talk to Volvo in Sweden he hasn't heard a thing from them and says legal action is the only way he can proceed.
"On the information we've received from our legal people we've now got everything we need to contest the decision," Rogers told speedcafe.
"We will now be proceeding and looking for a result.
"Our legal people have presented it to us and we signed it all off on Friday. We know exactly where we're going.
"They'd been ignoring us. We'd given them a fair chance and you can do no more than give people a fair chance.
"From a complete lack of any discussion it's left us no alternative other than to do what we've done.
"We're not legalistic people but the fact is we have a business to run and there are 36 people here that depend on my judgement to make sure they are employed every week.
"I'd be very surprised if we didn't have these cars and engines (next year)."
Rogers and the GRM team, including Kiwi driver Scott McLaughlin, will be competing at the Sandown 500 this weekend.
McLaughlin is fifth in the championship currently.