Getrag US Files For Bankruptcy After Chrysler Lawsuit, Transmission Plant Sits Unfinished [Financiapocalypse]

If you need more proof Chrysler is going to have a rough future, check out the bankruptcy filings for Getrag Transmission Manufacturing. The non-Ford US arm of transmission manufacturer Getrag filed for bankruptcy protection because it will be unable to pay for an Indiana plant it was supposed to build with Chrysler. We reported last year about the $530 million plant that was going to build a six-speed DSG gearbox for future Chrysler cars. Chrysler is suing Getrag for failing to secure $300 million in debt financing as part of the joint-agreement. As one can imagine, getting credit in this market to build a plant for future Chrysler cars isn't easy.

Though the plant is 80% complete, it isn't clear who could come in and pay for completion of the plant or if Chrysler will have cars to put the new transmissions in for the future since the company has few new cars coming down the pipeline. This is more bad financiapocalypse news for Indiana, a state in need of those extra jobs. (Thanks J. Katz For The Tip) [IndyStar]



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