KOKOMO — Chrysler LLC has filed suit Tuesday against Getrag and a U.S. subsidiary for breach of contract and fraudulent misrepresentation of Getrag’s ability to obtain financing for a plant being built in Topton County.

The plant, which would manufacture dual-clutch wet transmissions, would employ 1,400 people and begin operation in September 2009. The proposed location is at the intersection of U.S. 31 and Ind. 28.

Chrysler is the principal customer for the 700,00 transmissions that are to be produced annually at the plant.

A Chrysler spokesman said suit came about only after months of negotiations failed and said Getrag’s failure to obtain financing puts the future of the $530 million project in doubt. The suit is an attampt to recover all damages sustained by Chrysler as a result of Getrag’s wrongful conduct.

A Tipton County economic development official said a tax increment financing district was formed with bonds of $14.1 million to bring infrastructure upgrades to the 147-acre site.