Chrysler deal with Getrag reportedly dead
Things were just starting to look up for Chrysler's upcoming powertrains. The Phoenix V6 will hopefully return competitiveness to the engine bays of Pentastar vehicles, and a dual-clutch automated manual transmission joint venture with Getrag was nearly off the ground before both companies started shoving lawyers at each other. A joint venture plant has been built in Indiana, but the deal fell apart over money for tooling. Chrysler's shot a lawsuit at Getrag, alleging that the transmission specialist hasn't ponied up for tooling and equipment to build the gearboxes. For its part, Getrag contends that it had backing from German banks provided that Chrysler put the $300 million needed into escrow, and is prepared to sue Chrysler to get reimbursed for its investment plus damages. If Getrag and Chrysler can't come to terms, it doesn't look good for the future of Chrysler's clever gearbox which would offer increased performance and fuel economy. Chrysler's statement after the jump
[Source: Auto News - sub req]
| Statement in Response: Chrysler v Getrag |
| Auburn Hills, Mich., Oct 8, 2008 - On October 7, after months of negotiations, Chrysler filed a lawsuit in Oakland County Court charging that Getrag and its U.S. subsidiary Getrag Transmission Manufacturing LLC misrepresented its ability - and failed to use good faith efforts - to secure financing to support the joint development of a manufacturing plant in Tipton, Indiana, to build dual clutch transmissions, which would be purchased principally by Chrysler for use in its vehicles, in breach of their agreements with Chrysler.
Getrag was obligated under these agreements to obtain debt financing. Contrary to Getrag's representations to Chrysler, Getrag knew that it could not obtain debt financing within the required time frame, and also knew that unless Chrysler was willing to assume significant additional obligations, debt financing could not be obtained at all. Getrag also failed to use good faith efforts to secure the financing. Despite this conduct, Getrag expects Chrysler to reimburse costs Getrag has incurred in connection with the project. Chrysler brings this civil action to recover all damages it has sustained as a result of defendants' wrongful conduct and to obtain a judgment declaring that it has no obligation to reimburse defendants' costs related to the Tipton plant. Chrysler is evaluating its range of possible options to meet its needs for fuel efficient transmissions in future products. |
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Reader Comments (Page 1 of 1)
MemphisNET 9:39AM (10/19/2008)
What trans is it they use in the Journey in Europe? Is that a VW DSG? Would that fit the bill?
Just please don't bring out Phoenix cars with the 42**atx series :D It only took it two-decades to become reliable, but its about 2 speeds short of a game-changer.
Also, will Chryslers own in-house 6speed not do the trick? Seems like most of its problems are simply timing.
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Gabagool 10:28AM (10/19/2008)
"Seems like most of its problems are simply timing."--------------Yeah, GM has the same issue, they did not have Cruze when oil was over $100, but will when the country is in recession and oil is $50, same with Volt.
MemphisNET 11:37AM (10/19/2008)
I was referring to shift patterns/timings with the 6speed they use in the Avenger/Sebring/Journey. It's not a bad unit -- it just seems slightly lagged at times.
MikeW 12:19PM (10/19/2008)
But their '6 speed' is still the 4 speed automatic + a planetary reduction gear.
That is wholly inadequate for the year 2010+
socarboy99 10:00AM (10/19/2008)
The answer to the whole Chrysler mess...
let the UAW buy Chrysler!
They can say "Union owned for better service!"
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Avinash machado 10:09AM (10/19/2008)
But what if the service department went on strike too.
Gabagool 10:11AM (10/19/2008)
In a survey after survey of automotive suppliers GM, FORD and Chrysler are by far the most hated.
Also do not forget Ford suing over diesel engines.
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Rafael Illan 11:47AM (10/19/2008)
any proof of your statement?
Gabagool 12:47PM (10/19/2008)
http://findarticles.com/p/articles/mi_hb6674/is_/ai_n26625959
http://www.autonews.com/article/20080908/BLOG03/809080251
read the last one fully
or simply google supliers Big 3
tekd 10:43PM (10/19/2008)
They really need to work with their suppliers better and actually try to HELP suppliers lower their costs. Honda helps it's suppliers save money so they can charge Honda less and it benefits everyone
Constantly suing suppliers is bad form.
Gardiner Westbound 1:03PM (10/19/2008)
Good luck prying money out of Chrysler. It will be a long gone by the time this to court.
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whofan 2:53PM (10/19/2008)
Ford and GM have worked together on a six speed tranmission.
Chrysler should join the club, if they don`t get absorbed by GM.
None of these companys have to merge they just have to team up and but their resources together.
The American companys should work together and stay out of bed with the foriegn makers.
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Kumar 10:55PM (10/19/2008)
They canceled the contract because they don't need the transmissions anymore. Not with their new owners that is....
If they don't sell out/get bought/whatever, their best move would be to partner with VW for diesel and DSG to leapfrog the other domestics in diesel tech. I doubt VW wants to have anything to do with Chrysler after the minivan partnership though.
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Mirko 2:47AM (10/20/2008)
VW's DSG is made by Borg-Warner. Maybe that would be better than the Getrag units anyway, since the Borg-Warner DSG is more mature?
mroverlord 8:57AM (10/20/2008)
I'll blame the lawyers.........
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TD 11:20AM (10/22/2008)
The DSG is manufactured in Germany by VW/Audi. It is a VW/audi designed and owned transmission. BW supply the clutch and the mechatonics module to the transmission, nothing else. Important parts for sure, but BW is NOT a transmission manufacturer.
MR Hybrid 5:17PM (12/12/2008)
For the record, the Dual Clutch Transmissions involved were designed by GETRAG, Chrysler does not own the DCT IP and did not design them. So this site should not refer to "Chrysler DCT's"
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