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Chrysler sues gearbox supplier

20 October 2008

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Chrysler's problems show no sign of abating in the US, where the beleaguered manufacturer has just filed a lawsuit against transmission supplier Getrag.

The two companies have been collaborating on the creation of a dual-clutch transmission, sorely needed by Chrysler's US range, and due to be built at a new plant in Indiana.

The dispute is over which of the companies is responsible for finding money for tooling. Chrysler says that Getrag "misrepresented its ability... to secure financing to support development" of the new factory.

Getrag denies the accusation and is preparing to sue, claiming it had raised the finance to build the plant but that Chrysler had failed to deliver on its funding commitment.

In any event, Chrysler's US models won't be getting a twin-clutch transmission any time soon, and both companies will be incurring substantial legal bills.

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