Chrysler has filed a lawsuit in Oakland County Court charging that Getrag and its US 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. This, it is alleged, was in breach of their agreements with Chrysler.
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Chrysler claims Getrag was obligated under these agreements to obtain debt financing.
Chrysler says the filing follows ‘months of negotiations’.
It says that Getrag knew that it could not obtain debt financing within the required timeframe, 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, according to Chrysler and despite this conduct, Getrag expects Chrysler to reimburse costs Getrag has incurred in connection with the project.
Chrysler says it is bringing 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 added in a statement that it is evaluating its range of possible options to meet its needs for fuel efficient transmissions in future products.
See also: US: Chrysler chooses Indiana for gearbox JV
