Back around the time Chrysler was liberated from its German overlords, the automaker declared that it would make a $3b investment in launching new engines, complete with a fuel-efficient, dual-clutch transmission by Getrag. As we reported yesterday, the plan is now in limbo, as Getrag has stopped construction of a new facility designed to build 700k Chrysler-bound transmissions. Meanwhile, the Globe and Mail reports that New Process Gear– formerly owned by Chrysler, currently owned by Magna International– is laying off 1,650 workers at its suburban Syracuse, N.Y. transmissions parts factory. The newspaper tells the story as a union deal: "Magna has told the union it cannot afford to keep the factory open with its current cost structure and it plans to close the plant." But it's also likely that Chrysler is pulling back on ALL its transmissions suppliers to meet falling demand. Lest we forget, pre-sale, Chrysler was slated to sell Chery a complete assembly line for building automatic transmissions. So, is Chrysler's "Powertrain Initiative" dead, moribund, outsourced or some combo thereof?
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I think you might be reading too much into this. This plant in NY was already slated for closure back in 2003 during auto contract talks in 2003 when Daimler Chrysler owned it. Chrysler’s other transmission facilities in Indiana are still there making transmissions. There are at least two and a casting plant in Kokomo that makes aluminum parts, transmission and transaxle cases (note: it’s the world’s largest die cast facility).
My prediction: The DSG plant will go forward. Gertrag may have to accept less unit sales initially but if the tranny and the Phoenix engine are as good as there supposed to be then they can look at a long term increase in sales. Unless a European company like Gertrag would only be interested in the short term results instead of the long term investment. A foreign company couldn’t be that shortsighted, could it?
Agreed, stop fretting about Chrysler’s imminent demise, it’s already dead. There is no big 2.8 (unless the 0.8 is Toyota?) The kicking and flailing you see from Chryslerberus in this case is like the automatic random firing of synapses in a defective nervous system of a recently stricken animal. Chrysler was on life support when Daimler bought it, and it died when Cerberus bought it. May it rest in peace.
“Chrysler was on life support when Daimler bought it…”
i6,
read this:
http://www.allpar.com/history/chrysler-years/1998.php
That DSG plant would have been key to getting Chrysler back to being competitive in drivetrains. This is very bad news; essentially the tipping point at which time the product pipeline is revealed to be bare.
Uncompetitive product today and no capability to bring competitive products tomorrow spells doom.
Windswords: Thanks for the link. What I meant was Chrysler was put on life support when Daimler bought it.
i6: Understood. It’s a shame isn’t it for company that was doing so well to be sucked dry like that? I know making fun of Bob Lutz is in vogue, but if he had been in charge they would have never jumped into bed with Daimler. Lutz was vocal in his opposition to a proposal to merge with Fiat during the late eighties/early 90’s when business was not good. Now it looks like Chrysler won’t survive without another marriage to someone.