TTAC called this back in January, when we first heard reports that construction had stopped on a $530m Getrag transmission plant in Tipton, Indiana. The factory was designed to crank-out DSG-style (dual clutch) transmissions for the Phoenix V6 engine program. Our initial instincts were correct: Chrysler has cut bait on the deal. ChryCo’s official FOAD came despite (because of?) the fact that they’re suing Getrag for breach of contract. Chrysler alleges the supplier failed to raise an agreed $300m in debt financing to build the plant. “Getrag said on Friday Chrysler had rejected a financing structure it offered with banks,” Reuters reports. “[The arrangement] required Chrysler to secure some of their obligations under the supply agreement.” Translation: Chrysler refused to guarantee factory finance with its assets. “Getrag is still evaluating its options in light of Chrysler’s decision… It also said it would seek reimbursement from Chrysler for expenses incurred by Getrag and its suppliers in the project.” Good luck with that.
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I drive by the Getrag site everyday on my commute. Looks like the plant is completed, a lot of cars in the lot….does any one know if they have been making anything there?
It’s too bad that Chrysler puts such little emphasis on product development. This motor/trans combo had some real potential, but no, they’d rather just hold on to the cash. Chrysler’s engineers are incredibly capable, and it hurts to see them stifled like this.
Well even though Chrysler has $11 billion in the bank and could easily have funded this project, its good to see them take a fiscally (aggressively?) conservative approach.
Other manufacturers will have brought updated products to market by 2010.
This is another Cerberus nail in the coffin for Chrysler and Dodge mid-size cars. With or without a shot gun wedding with GM – the current car line up will be toast in 2 years.