Monday, December 15, 2008

Transmission maker Getrag ends deal with Chrysler

Filed under: all news — admin @ 9:40 pm

TIPTON, Indiana: Chrysler LLC has     termination of the agreement comes
terminated a financing options just weeks after Chrysler filed a
agreement with German manufacturer lawsuit against Getrag, alleging
Getrag, leaving the supplier that it misrepresented its ability
without a primary customer for the to secure financing to build the
transmissions it expected to make Tipton plant.The Auburn Hills,
at a new factory in Tipton.Indiana Michigan, automaker said it is
economic development officials seeking damages for "wrongful
hope Getrag can find a new conduct" and a release from
customer soon for dual-clutch reimbursing Getrag's costs related
transmissions that were to be made to the plant.Getrag said in a
at the $530 million factory."It's statement Saturday that Chrysler
a Getrag-owned facility, and they rejected the financing structure
have put a lot of money into it, Getrag offered, which required
so they are certainly going to Chrysler to secure some of the
want to make it productive," said obligations under the
Secretary of Commerce supply agreement.Getrag said
Nathan Feltman.A letter Chrysler Chrysler's lawsuit claims are
sent Friday to Getrag was "written without merit. The company intends
notice of termination of the to vigorously defend the lawsuit,
financing options agreement to the statement said, and could file
Getrag, effective immediately," counterclaims against Chrysler.The
according a Chrysler statement future of the Tipton plant has a
released Saturday.The failure of been a source of speculation, but
the joint venture has left Feltman said he's "pretty
Chrysler without a U.S. source of confident there's a company out
fuel-efficient transmissions. The there that will see this as
Tipton plant was expected to an opportunity."Mitch Frazier,
produce up to 700,000 with the Indiana Economic
transmissions a year."Chrysler is Development Corp., said Saturday
evaluating its range of possible that Getrag is actively looking
options to meet its needs for for opportunities for
fuel-efficient transmissions in the plant."They are shopping for
future products," the automaker another partner," Frazier said.$
said in its statement.The

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