Chrysler, ZF poised to announce axle pact

DETROIT -- Chrysler appears to have a deal with German axle maker ZF Friedrichshafen to operate an axle plant being built in Marysville, Michigan.

In a statement today, Chrysler said it plans to announce tomorrow a long-term operational agreement for the plant.

The UAW began telling axle workers in September that Chrysler had a deal with ZF. But ZF executives had denied that an agreement had been reached.

A spokesman for Chrysler declined comment today. A spokesman for ZF could not be reached for comment.

The announcement at the Marysville plant is scheduled for 9 a.m. tomorrow. Chrysler co-President Tom LaSorda and General Holiefield, UAW vice president, are scheduled to attend. The $700 million plant could replace Chrysler's Detroit Axle plant and employ 900 workers.

The plant is scheduled to open in 2010.

A Chrysler arrangement with another Germany-based supplier has not fared as well. Getrag Group's U.S. auto parts unit filed for Chapter 11 bankruptcy protection today, citing a lawsuit filed by Chrysler last month in a dispute over an unfinished transmission plant.

Getrag claims it owes more than $500 million on the factory it was building in Tipton, Ind. In court papers, Getrag said that the plant is 80 percent complete.



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