STERLING HEIGHTS, Mich. — Getrag Transmission Manufacturing LLC (GTM LLC) has filed for Chapter 11 protection for its Tipton, Ind., facility. The GTM LLC facility in Tipton was being constructed for the sole purpose of manufacturing dual clutch transmissions for Chrysler.
According to Getrag, this action is a direct result of the recent termination of its contract with Chrysler. As a result of Chrysler’s actions, GTM LLC said it has been forced to terminate its operations in Tipton and cancel the project entirely. The filing will enable GTM LLC to deal with all claims related to the project in an orderly and equitable fashion.
GTM LLC and its German affiliate also filed a countersuit on Oct. 30, against Chrysler to recover, among other elements, costs associated with the project and reimbursement of all expenses incurred by GTM LLC and its suppliers in connection with the project.
"We recognize these developments have had significant impact on all of our stakeholders, including employees, suppliers and the Tipton community," said Jim Shoup, GTM LLC Chief Executive Officer. "We ask for their patience and understanding as we manage through this process."
The company added that the filing is unrelated and does not impact the other operations of Getrag Corp. or Getrag Transmissions Corp. in the United States.