Most people are kind of clueless about the transmissions in their cars. They tend to think that each manufacturer builds their own unique gearboxes for each vehicle in their particular model lines. But in reality there are only a few transmission makers out there that supply most every auto manufacturer on the market today.
Take for example German transmission maker ZF who supplies most all of the automatics for not only BMW and Jaguar but also for some Hyundai models. Who ever thought a BMW and a Hyundai had anything in common? You would be surprised how many manufacturers depend on the same component makers in their parts supply process.
Another storied name in the transmission manufacturing game is that of Getrag. Getrag makes manual transmissions for companies as varied as General Motors, Toyota and Ford Motor Company. Getrag transmissions are also used in some Nissan models.
Knowing how many automakers depend on Getrag for their very business makes the news that the company recently filed for Chapter 11 Bankruptcy protection all the more disturbing. Like the proverbial house of cards, if Getrag fails will all of the automakers that depend on them fail as well? With no end in sight for the current automotive financial crisis this is starting to look more and more likely.
Getrag’s failure is mainly the fault of the one and only basket case known as the Chrysler Corporation. Chrysler, in an attempt to get its very own state of the art double-clutch automatic transmission, commissioned Getrag to build a new factory in Tipton, Indiana. When Getrag found itself delayed in getting a full $500 million dollar investment for its share of the factory, Chrysler decided to pull out entirely. Could it be that Chrysler realized it could never front the cash for its investment in a new transmission factory?
While it would be easy to see Getrag as a victim of Chrysler pulling out of a pivotal deal, times are tough at most every automotive component manufacturer. Jim Shoup, Getrag’s Chief Executive Officer, had this to say, "We recognize these developments have had significant impact on all of our stakeholders, including employees, suppl iers and the Tipton community. We ask for their patience and understanding as we manage through this process."
Our view? It looks like another auto supplier is about to bite the dust. While many suppliers have so many competitors that their failure is not that big a deal, the failure of Getrag will definitely cause a snag for automakers. Getrag makes specific transmissions for certain models that were designed to fit their gearboxes. If these transmissions are no longer available, will the vehicles that use them no longer exist? Let’s hope not.