Chrysler Cancels Dual-Clutch Deal With Getrag, U.S. Availability Postponed
Posted Today 11:59 AM by Andrew Strieber

Lost in the wave of news surrounding Chrysler's ongoing merger talks and the possibility it could be absorbed by GM, it looks like Mopar fans will be hit by another blow even if the automaker manages to stick around after announcing that its new dual-clutch transmission developed with Getrag would finally reach the U.S. in 2010, the two companies got into a legal dispute over costs to set up an American manufacturing plant, and now it appears that the deal is officially dead in the water.

At the recent Paris Motor Show Chrysler announced that the sophisticated new tranny, which executes lightning-fast shifts for increased performance, better fuel-economy, and lower CO2 emissions, would soon be available on the Sebring and Avenger as well as the new Dodge Journey but only in Europe. American buyers would continue to make do with conventional four-speed automatics on four-cylinder versions of the Journey and Mopar midsizers, and six-speeds on models equipped with a V-6. The automaker did say its new gearbox would arrive stateside "in significant volumes" by 2010, but this was dependant on the construction of a new manufacturing plant in Tipton, Indiana, which was to be financed in a partnership with Getrag.

However this plan abruptly turned sour when Chrysler filed suit against Getrag, claiming the transmission maker failed to raise $300 million to fund tooling and equipment for the factory. Getrag countered that it had the financing arranged through several German banks, but only on the condition that Auburn Hills escrow the same amount for eventual reimbursement. As part of the suit Chrysler claims it didn't find out about this requirement until after it signed a deal with Getrag to build the dual-clutch transmissions.

Representatives from Chrysler and Getrag met on Friday in an attempt to end the dispute, but a solution couldn't be found and the automaker canceled the deal entirely, terminating the supply agreement and leaving the future of its sophisticated new gearbox in limbo. Getrag, however, says it "is astonished by this action" and Chrysler's "claims are without merit," and it intends to "pursue all rights and remedies" in order to get reimbursed for its expenses. Currently the Tipton plant is mostly built but not equipped, so if Chrysler still intends to offer its dual-clutch transmission in the U.S. it will need to find another supplier. Of course given that a merger with GM could possibly kill off the automaker entirely, the chances seem slim that a resolution will be reached anytime soon.

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.