Chrysler sues Getrag over U.S.-built dual-clutch trannies
Chrysler has managed to stay out of the doom and gloom news for a few weeks now, which goes to show that going private can have its benefits. But things couldn't stay quiet forever, and as if the company needed something else to deal with, it's now in row with German transmission supplier Getrag over a potentially failed joint venture.Chrysler uses Getrag double-clutch transmissions (DCT) in the Euro-version Dodge Journey (seen above), and is planning on adding the Euro Avenger and Sebring to the DCT lineup. Getrag signed an agreement with Chrysler to build a factory in the U.S. that would also supply Chrylser's American products with DCTs, and in return for Chrylser agreeing to get such transmissions only from Getrag, Getrag would get $300 million to finance and tool the factory.
According to Getrag, it only intended to borrow the funds if said funds were guaranteed by the German government. According to the German government, it would only guarantee the $300 million loan if Chrysler put that same amount in an escrow account to guarantee repayment. According to Chrysler, it had no idea of such an arrangement, and Getrag never should have signed the agreement if it meant Chrysler needed to back Getrag's loan with its own cash. And that's how court cases are made. While the factory remains in limbo, Chrysler needs to find another supplier for DCTs for its American cars, and do it in a hurry.
[Source: Automotive News, sub. req'd]
Reader Comments (Page 1 of 1)
Drew54 4:10PM (10/10/2008)
Ummm. Nissan? Ugh.
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zypr3xa 4:25PM (10/10/2008)
If I am thinking correctly one of the Getrag plants were to be built in Tipton, In and last time I was down that direction all they had was concrete poured. So I knew something was going on.... GHEYYYYY
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Gardiner Westbound 4:24PM (10/10/2008)
Sounds like the German government doesn't have much faith Chrysler will still be in business when the time comes to pay for the transmissions.
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thomas 4:31PM (10/10/2008)
chrysler pwn'd by germans yet again.....
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BigWill 5:22PM (10/10/2008)
I'd say Chrysler doesn't have the $300M to fulfill what smells like a Daimler-made commitment.
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gslippy 5:36PM (10/10/2008)
Buy them from VW.
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FFS 10:10AM (10/12/2008)
You mean Borg-Warner. But they should have asked for it as an exchange to the van thing
MONTE 6:17PM (10/10/2008)
Here is an idea, run away from Getrag as fast as you can. There isn't a transmission made that I have seen as many problems with, and that includes there diffs (hello CTS-V). Chrysler, give on those egg shell trannies and go with something different.
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Don 8:36PM (10/11/2008)
Just what Chrysler needs. Great. Another German company out to screw ChryCo.
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Elliot 4:00PM (11/17/2008)
Pretty sure my 2000 BMW 3 series has a 5spd GETRAG tranny in it. 300,000km (187,000miles) on it, not one problem......
However, didn't know that GM had issues with them....
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