• Oct 19, 2008
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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    • 1 Second Ago
  • 14 Comments
      • 6 Years Ago
      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.
        • 6 Years Ago
        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?
      • 6 Years Ago
      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.
      • 6 Years Ago
      I'll blame the lawyers.........
        • 6 Years Ago
        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.
      • 6 Years Ago
      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.
      • 6 Years Ago
      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"
      • 6 Years Ago
      The answer to the whole Chrysler mess...
      let the UAW buy Chrysler!

      They can say "Union owned for better service!"
      • 6 Years Ago

      Good luck prying money out of Chrysler. It will be a long gone by the time this to court.

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