New Jobs In Jeopardy After Chrysler Pulls Contract With Indiana Plant

Getrag Plant 80 Percent Finished

POSTED: 6:04 pm EDT October 20, 2008
UPDATED: 8:53 pm EDT October 20, 2008

TIPTON, Ind. More than 1,000 jobs expected to come to the Tipton area next year were in limbo Monday after Chrysler pulled out of a multi-million-dollar plant project.

The automaker filed a lawsuit against Getrag Transmissions, claiming that the German company failed to use good faith efforts to obtain financing for the new plant, which is about 80 percent complete, 6News' Renee Jameson reported.

The $530 million factory was expected to open sometime next year.

"Those 1,200 jobs in this economy, it sure means a lot. That's why we're so disappointed in what's going on now," said Tipton Mayor Dan Delph.

The state secretary of commerce issued a statement calling the development "incredibly unfortunate."

Tipton city officials are scheduled to meet with representatives from Getrag on Tuesday to discus options and the possibility of a new partner in the project.