Another Chrysler-Related Transmission Factory Goes Dark
Back around the time Chrysler was liberated from its German overlords, the automaker declared that it would make a $3b investment in launching new engines, complete with a fuel-efficient, dual-clutch transmission by Getrag. As we reported yesterday, the plan is now in limbo, as Getrag has stopped construction of a new facility designed to build 700k Chrysler-bound transmissions. Meanwhile, the Globe and Mail reports that New Process Gear– formerly owned by Chrysler, currently owned by Magna International– is laying off 1,650 workers at its suburban Syracuse, N.Y. transmissions parts factory. The newspaper tells the story as a union deal: "Magna has told the union it cannot afford to keep the factory open with its current cost structure and it plans to close the plant." But it's also likely that Chrysler is pulling back on ALL its transmissions suppliers to meet falling demand. Lest we forget, pre-sale, Chrysler was slated to sell Chery a complete assembly line for building automatic transmissions. So, is Chrysler's "Powertrain Initiative" dead, moribund, outsourced or some combo thereof?
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"Chrysler was on life support when Daimler bought it..." i6, read this: http://www.allpar.com/history/chrysler-years/1998.php
That DSG plant would have been key to getting Chrysler back to being competitive in drivetrains. This is very bad news; essentially the tipping point at which time the product pipeline is revealed to be bare. Uncompetitive product today and no capability to bring competitive products tomorrow spells doom.
Windswords: Thanks for the link. What I meant was Chrysler was put on life support when Daimler bought it.
i6: Understood. It's a shame isn't it for company that was doing so well to be sucked dry like that? I know making fun of Bob Lutz is in vogue, but if he had been in charge they would have never jumped into bed with Daimler. Lutz was vocal in his opposition to a proposal to merge with Fiat during the late eighties/early 90's when business was not good. Now it looks like Chrysler won't survive without another marriage to someone.