Getrag says "stunned" by Chrysler suit

DETROIT (Reuters) - German auto parts maker Getrag Transmission Manufacturing said on Monday it was "stunned" by a lawsuit by Chrysler LLC, saying it had not violated any agreements to supply transmissions for the automaker.

Chrysler filed a suit with Oakland County Court in Michigan on October 8, saying Getrag had failed to secure a pledged debt financing necessary to build a plant in Tipton, Indiana, to produce fuel-saving transmissions for the automaker.

Chrysler said in court documents Getrag had been obliged under the agreement to obtain debt financing worth up to $300 million, and its failure to do so within the required time frame threw the project into uncertainty.

"Having worked closely with Chrysler to secure the financing of this project, we were stunned to receive this lawsuit," the supplier said in a statement.

"Getrag strongly disagrees with any claim by Chrysler that it has violated any agreements between the parties, and Getrag has acted in good faith with Chrysler to develop the project," it said.

Getrag said it was in the process of reviewing the lawsuit and has contacted Chrysler's representatives to arrange a meeting to discuss the situation.

Chrysler and Getrag started building the $530 million plant in May 2007 under an agreement reached in February that year.

The plant was scheduled to open in 2009 and manufacture fuel-saving dual-clutch transmissions, which would be purchased principally by Chrysler, Chrysler said.

Chrysler is seeking damages for any delays and potential costs it might incur for changing transmission suppliers.

The company has also asked the court to relieve it of any reimbursement of costs already absorbed by Getrag.

(Reporting by Soyoung Kim, editing by Gerald E. McCormick)