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Mayer Brown is Representing Chrysler In Transmissions Lawsuit

8 October 2008
Mayer Brown LLP is representing Chrysler in a lawsuit filed in Oakland County Court on Oct. 6, charging that Getrag and its US subsidiary Getrag Transmission Manufacturing LLC, misrepresented its ability, and failed to use good faith efforts, to secure financing to support the joint development of a manufacturing plant in Tipton, Indiana to build dual clutch transmissions, which would be purchased principally by Chrysler for use in its vehicles, in breach of their agreements with Chrysler.

Getrag was obligated under these agreements to obtain debt financing in an amount up to $300 million to complete the plant. Contrary to Getrag's  representations to Chrysler, Getrag knew that it could not obtain debt financing within the required time frame, and also knew that unless Chrysler was willing to assume significant additional obligations, debt financing could not be obtained at all. Getrag also failed to use good faith efforts to secure the financing. Despite this conduct, Getrag expects Chrysler to reimburse costs Getrag has incurred in connection with the project.

Chrysler brings this civil action to recover all damages it has sustained as a result of defendants’ wrongful conduct and  to obtain a  judgment declaring  that it has no obligation to reimburse defendants’ costs related to the Tipton plant.    

Chrysler is evaluating its range of possible options to meet its needs for fuel efficient transmissions in future products.

The Mayer Brown team is being led by partners Michael Gill and Rick McCombs.

Related Information

  • Related People
    Michael J. Gill
    T +1 312 701 7128

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