ˆ Chrysler sues Getrag over U.S.-built dual-clutch trannies

tags : chrysler , chrysler getrag lawsuit , chrysler llc , chryslergetraglawsuit , chryslerllc , court case , court cases , courtcase , courtcases , getrag , getrag-dct , lawsuits , manufacturing , plants , transmissions

Chrysler has managed to stay out of the doom and gloom news for a few weeks now, which goes to show that going private can have its benefits. But things couldn't stay quiet forever, and as if the company needed something else to deal with, it's now in row with German transmission supplier Getrag over a potentially failed joint venture. Chrysler uses Getrag double-clutch transmissions (DCT) in the Euro-version Dodge Journey (seen above), and is planning on adding the Euro Avenger and Sebring to the DCT lineup. Getrag signed an agreement with Chrysler to build a factory in the U.S. that would also supply Chrylser's American products with DCTs, and in return for Chrylser agreeing to get such transmissions only from Getrag, Getrag would get $300 million to finance and tool the factory. According to Getrag, it only intended to borrow the funds if said funds were guaranteed by the German government. According to the German government, it would only guarantee the $300 million loan if Chrysler put that same amount in an escrow account to guarantee repayment. According to Chrysler, it had no idea of such an arrangement, and Getrag never should have signed the agreement if it meant Chrysler needed to back Getrag's loan with its own cash. And that's how court cases are made. While the factory remains in limbo, Chrysler needs to find another supplier for DCTs for its American cars, and do it in a hurry.

posted : 10/15/2008 @7:57:54 PM

ˆ GM claims $450k lost to improper employee discounts

tags : court case , court cases , courtcase , courtcases , employee discount , employee discounts , employeediscount , employeediscounts , gm , gm employee discount , gmemployeediscount

When the land was flowing with milk and honey, GM didn't get medieval on folks who took just a little more than their fair share. Now that GM's diet has been pared back to a few nuts and the occasional berry... well, every nut counts. So when The General performed a random audit and found that employees had allegedly been sharing their employee discounts with ineligible buyers, instead of a big "whatever," GM initiated lawsuits. Based on the known records, GM is trying to recoup $450,000 plus court costs and attorney's fees from at least nine court cases. In addition to offering the discounts to those who shouldn't have had access to them, GM said the the employees were using the discounts "for their own financial gain." Some of the employees being sued no longer work for GM. Attorneys for the defendants have suggested that shady dealers simply used the employees' information to give the discounts to other buyers without the employees' knowledge or consent. At this point, no dealers are named in the lawsuits, so it's up to the employees in question to prove their innocence. And for now, when it comes to pennywise, GM isn't playing around...

posted : 9/14/2008 @5:27:16 AM

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