by David Zatz • Posted on October 19th, 2008
According to Getrag Transmission Manufacturing LLC, Chrysler has canceled the construction of advanced, efficient dual-clutch transmissions by Getrag in Indiana, as of Friday. Chrysler has sued Getrag over its inability to borrow $300 million to pay for tooling; Getrag said it would sue Chrysler for damages and reimbursement for the expense of building the plant, which is fairly advanced in construction and was set to start building the transmissions in 2009.
Getrag issues a press release, which stated, in part:
Chrysler LLC has rejected the financing structure that GETRAG had offered together with its banks, which required Chrysler to secure some of their obligations under the supply agreement, and has elected to terminate the supply agreement and related documents.
GETRAG is astonished by this action and will pursue all rights and remedies under the terms of the supply agreement for, among other things, reimbursement of all expenses incurred by GETRAG and its suppliers in connection with the project.
With respect to the pending lawsuit, GETRAG maintains that Chrysler’s claims are without merit. GETRAG intends to vigorously defend the lawsuit and file counterclaims against Chrysler to recover damages suffered by GETRAG caused by Chrysler’s conduct.
While sales numbers won’t be released until a week from today and even though there’s one more selling weekend in the month, industry analysts have already issued their forecasts for July light vehicle sales.
Edmunds.com, Kelley Blue Book’s kbb.com, and TrueCar.com all see Chrysler Group reporting the highest growth of the top automakers with sales more than 20% higher than they were in July 2013, a month where Chrysler temporarily fell to fifth in the volume rankings, outsold by American Honda....
As government rules get tighter, and to avoid losing customers if/when gas prices rise, automakers are trying to increase gas mileage.
At Chrysler, Ram has been slashing fuel consumption by cutting parasitic losses, using eight-speed automatics, and spreading diesels to the 1500 line. Jeep is busily creating the new Wrangler, with an eye towards saving weight, and Chrysler has been advertising for a senior buyer for large aluminum castings....
The slow week for Fiat news has journalists scrambling again. Thursday’s Financial Times reported that Fiat-Chrysler and PSA Peugeot have discussed a merger.
Unlike the story in Manager Magazine about a possible FCA-Volkswagen tieup, the Financial Times said “people familiar with the talks” were fairly straightforward: the automakers did have discussions but nothing progressed beyond that point....
Institutional Shareholder Services Inc. (ISS), the world’s leading provider of corporate proxy voting services, has issued a recommendation that Fiat shareholders reject the proposed merger of Fiat and Chrysler.
Fiat needs the approval of the holders of at least two-thirds of the shares being voted.
According to a Reuters report, an ISS recommendation document says, “Despite the potential benefits of a NYSE-listing in attracting new investors, (the merger) would decrease shareholder rights.”
Frontis Governance, a smaller, Italian proxy advisor based in Rome, has made the same recommendation....