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(Tipton, Indiana) - Getrag Transmission Manufacturing has filed for chapter 11 bankruptcy protection and halted construction on a dual-clutch transmission manufacturing facility here. The facility, a joint venture valued at more than half a billion dollars, was being constructed for the sole purpose of supplying Chrysler.

According to a news release, the action is a direct result of Chrysler’s recent termination of contractual agreements related to the construction and operation of the Tipton manufacturing facility.

“The filing will enable GTM LLC to deal with all claims related to the project in an orderly and equitable fashion,” the release says.

Getrag Transmission Manufacturing and its German affiliate also filed a countersuit on October 30, 2008 against Chrysler to recover, among other things, costs associated with the project and reimbursement of all expenses incurred by Getrag Transmission Manufacturing 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, Getrag Transmission Manufacturing Chief Executive Officer. “We ask for their patience and understanding as we manage through this process.”

GETRAG Transmission Manufacturing is inclusive only of the Tipton facility and its filing is unrelated and does not impact the other operations of GETRAG Corporation or GETRAG Transmissions Corporation in the United States, company officials said.

For more information on the company visit http://www.getrag.de/en/16