Chrysler, Getrag deal

CHRYSLER Group and Getrag have agreed to build a new plant in the United States, specifically to produce fuel-saving DSG-style dual-clutch transmissions for future Chrysler models.

The US car-maker and the German supplier announced on Monday that the new joint-venture plant will be built in Tipton, Indiana, at a cost of $US530 million ($A630 million) and will have the capacity to produce 700,000 transmissions a year.

Under the terms of the joint investment, Getrag will operate the new plant and employ about 1050 Chrysler Group workers. Construction of the 75,000 square-metre plant begins next week, with production scheduled to start in 2009.