Kokomo transmission assembly

The Detroit News reports that Chrysler has filed a complaint with the Indiana Utility Regulatory Commission seeking the return of a $2.5 million security deposit charged to the automaker's Kokomo, Indiana facilities by Duke Energy, plus interest. The called Duke's actions "unreasonable and discriminatory"

In 2009, after Chrysler's bankruptcy and corporate overhaul, Duke requested a security deposit because it viewed the freshly-minted Chrysler Group LLC, allied with Fiat, as an entirely new customer.

Chrysler says it had already set up a prepayment system that "mitigated any risk to Duke" and negated the need for any security deposit, but it caved and paid the sum when Duke threatened to cut off power to the four Kokomo facilities.

According to the report, Chrysler has asked for the deposit back, but Duke Energy says it won't return the money until Chrysler makes 12 consecutive payments, maintains a long-term credit rating of "BB" through Standard & Poors, and Duke determines Chrysler's financial status and acceptability of risk.

Chrysler argues that Duke has not established any criteria for that final element, and both parties will meet in Indianapolis on August 15 to start hashing out the situation.



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  • 21 Comments
      dukeisduke
      • 2 Years Ago
      That's the second time AB has run that photo, and it got a lot of comments last time, about the girl with the earrings.
      Radwon
      • 2 Years Ago
      Sounds like alot has been left out from both sides so let's see what happens on August 15 and if AB reports on it.
      brian
      • 2 Years Ago
      I guess Duke needs the money from Chrysler to help pay that one-day CEO's $44MM golden parachute...
      dustie262
      • 2 Years Ago
      This is off topic but I cannot stand how ghetto those factory workers look in their street clothes. They need proper Chrysler uniforms just like bmw or ferrari. I blame the stupid unions separating the employees from the company, such a lack of pride. I work at fedex and its nice to see everyone working on the planes to have matching uniforms.
        johnbravo6
        • 2 Years Ago
        @dustie262
        I'd prefer the people producing are comfortable rather than more presentable to all 0 customers that they interact with daily. Uniforms usually look pretty lame anyway. It's actually sad that in this country of individual achievement, uniformity would be favored. Not everyone belongs to the hive mind.
      John Branco
      • 2 Years Ago
      I totally agree with you dustie262. Why is it when you see Japaneese or German auto workers they have clean company uniforms on and you see workers in the US auto workers they look like they just rolled out of bed? How about the girl in the picture with the hoop earrings!! Can we say, "Rip your ear off when that gets caught in the machinery?" There should be a dresscode with company supplied corporate uniforms. Maybe that would foster building a better product?
        Marc Swankhuizen
        • 2 Years Ago
        @John Branco
        Don't see how they clothes they wear affects the quality of product...
          Dark Gnat
          • 2 Years Ago
          @Marc Swankhuizen
          Uniforms costs a lot of money, whether the workers pay for it out of pocket, or if the company pays for it. They may have simply determined that casual clothing is more comfortable, which may increase productivity, and therefore uniforms are not cost effective. The hoop earrings are probably not safe, though.
        g.torino
        • 2 Years Ago
        @John Branco
        But I must admit. That girl looks pretty. Hope Chrysler can make uniforms that look good and not shabby.
      CB
      • 2 Years Ago
      Well, I can't say I blame Duke. Chrysler did just file bankruptcy a screw a bunch of people.
      JN
      • 2 Years Ago
      Duke is not exactly one of Indiana's best corporate citizens. Customers have been up in arms over the company's new coal-gasification plant in SW Indiana that's going to cost folks a small fortune in rate hikes, all because of the cost overruns in building that white elephant. Given that Chrysler employs a good many Hoosiers, I think - and certainly hope - that the IURC may well come down against Duke on this one. Plus, the IURC has been seen as a little too cozy with Duke over the Edwardsport deal (just Google "IURC Duke"), which led to some ... uhhh ... "unexpected job creation" at the Commission AND Duke.
      Ducman69
      • 2 Years Ago
      That is the weirdest looking kitchen I have ever seen.
        GreenN_Gold
        • 2 Years Ago
        @Ducman69
        Well you probably won't win any friends now earn any PC points, but I chuckled.
      moe6
      • 2 Years Ago
      That seems fairly acceptable from Duke.
      Bill Burke
      • 2 Years Ago
      I have a friendly solution. Why doesn't Chrysler give a bunch of hybrid Ram trucks to Duke for evaluation and Duke gives them the deposit.... wait a minute... didn't they already get the Rams? Hey Duke, nice way to say "thank you".
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