Chrysler bankrupts Getrag�s U.S. plant division

Message Topic Search Topic Options Post Reply Create New Topic Printable Version Translate Topic

   Could this spell trouble for BMW gearboxes?

 Getrag Transmission Manufacturing LLC � the U.S. subsidiary of Germany�s Getrag Corp � filed for bankruptcy protection on Monday as a result of its ongoing legal dispute with Chrysler. The American division was formed in order to provide Chrysler with dual-clutch transmissions for its future models. Chrysler sued the company, saying it failed to secure the financing needed to complete its U.S. plant.

The Tipton, Indiana plant is said to be 80 percent complete. In October, Chrysler cancelled its contract with the company. Coupled with the bankruptcy filing, it�s looking very unlikely the facility will ever be completed, unless another automaker steps in. An estimated $530 million was expected to be invested in the plant, which would employ about 1,200 workers.

A Getrag spokesperson told Reuters the bankruptcy filing does not affect the other operations of Germany-based Getrag Corp. It�s not clear if the company will go ahead with plans to supply Ford with dual-clutch transmissions, but the company�s planned Mexican assembly plant will probably be able to provide the needed gearboxes.

Getrag and Chrysler announced the joint venture project in April 2007 with plans to ship cars equipped with the transmissions by late 2009.

Getrag�s German operations provide transmissions to BMW, Audi, Porsche, and others.

[leftlanenews.com]