plans to start equipping some of its vehicles with dual clutch transmissions later next year has just hit a major hitch. its deal to build a joint venture transmissions plant with Getrag is now dead. A week after suing the transmission supplier
for its failure to raise the necessary cash to pay for tooling for a new factory, Chrysler has now terminated the deal altogether. The two companies met on Friday to try to resolve the issue but could not reach agreement so Chrysler canceled the entire project. Getrag had lined up $300 million in funding from German banks, but the banks wanted Chrysler to put a similar amount of money in escrow, something to which the automaker would not agree. Chrysler was responsible for construction of the factory and Getrag was to pay for tooling. The factory is nearly completed and it's not clear how Chrysler plans to proceed now.
[Source: Automotive News
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