Getrag Suspends Construction of Chrysler Transmission Factory

Robert Farago
by Robert Farago

Inside INdiana News reports that autoparts supplier Getrag has suspended construction of a $530m DSG (dual sequential gearbox) transmission plant in Tipton County. Starting in 2009, the factory was set to produce 700k transmissions per year and employ some 1400 people. Indiana was in deep too; the Indiana Economic Development Corporation stumped-up $8.75m worth of performance-based tax credits and offered up to $500k for training grants. The state was on the hook for $3.4m for local road improvements. Getrag Human Resource Director Randy Cyman told the News that the plant is on hold "indefinitely" while Chrysler and Getrag work out a supply agreement. "He says the two parties are meeting daily to try to iron out some unspecified issues. Cyman says he does not believe the project is in jeopardy. He says both parties realize the value of the new state-of-the-art transmission plant." Let's assume that Getrag had a clear contract with Chrysler before starting to build the factory. So, did Chrysler try to squeeze Getrag's profit margins and Getrag balked? Is Chrysler trying to walk away from an expensive project? TTAC is investigating…

Robert Farago
Robert Farago

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  • Orian Orian on Jan 10, 2008

    I'd guess the axing of some products and the realization no one is buying much of anything out of their current line up.

  • Cicero Cicero on Jan 10, 2008

    Dateline: Tipton County "Getrag puts Chrysler transmission plant plans in neutral" "Chrysler taps brakes on transmission pact, Getrag goes through windshield" "Getrag swerves to avoid looming financial pothole" "Slushbox works put on ice" "Getrag balks in cogswapper plant stopper" "Chrysler hops out of bed before Getrag finishes." (Sorry.)

  • Jthorner Jthorner on Jan 10, 2008

    "Ugh… Well if Chrysler won’t buy their DSGs then perhaps Ford will." Not likely. Ford has made a huge investment in it's six speed automatic transmission production based on the joint design work it did with GM. "... on volume. Getrag was promised more, Chryslerberus wants less." It sure looks like Chrysler is getting it's wish.

  • Redbarchetta Redbarchetta on Jan 11, 2008

    I was thinking about this last night but can't they just start shipping excess DSG(the units Chrysler doesn't want, maybe more) back to europe for a different manufacturer. With the dollar so low it would probably be more profitable than selling th units the Chrysler. Do they have an exclusive contract with Chrysler and only Chrylser that would put them in a nasty lawsuit if they started dealing with another auto manf?