Indiana investigating Chrysler

Chrysler is under investigation by the state of Indiana. A spokesman for Indiana Secretary of State Todd Rokita confirmed the state is looking into possible securities fraud relating to the failed joint venture with Getrag Transmission LLC.

Under the joint venture, a $530 million transmission plant, located in Tipton County, south of Kokomo, Indiana, would have employed about 1,200 workers. The project fell apart after Chrysler sued Getrag, saying the transmission maker had failed to obtain promised financial backing. The lawsuit led to Getrag filing Chapter 11 bankruptcy last November.

At issue are revenue bonds totaling $11 million sold to Chrysler and Getrag by Tipton County. Chrysler has already offered to transfer $5.5 million in bonds to Tipton County to minimize the impact of the project cancellation on the county. More than 40 contractors have not been paid for the work they did on the facility. Chrysler says Getrag is responsible for the payments since it hired the contractors.

While the investigation began two weeks ago Rokita says there have been no complaints or allegations made.