Chrysler Group’s investments for the transmission manufacturing facilities in Kokomo, Indiana, will amount to $843 million (EUR629 million). The plant is expected to manufacture advanced front wheel drive automatic transmissions for upcoming models.
This report about the increased investment comes at the same time as President Obama and vice president Biden’s tour of the Kokomo factory.
The plant is anticipated to create new jobs in Indiana. With this report, it means that Chrysler’s total investment in US facilities would go up to nearly $3 billion (EUR2.2 billion) since June 2009.
The biggest portion of the investment is for Kokomo facilities, bringing the total to $1.1 billion (EUR821 million).
This amount will be used to install equipment and special tooling to modernize the Indiana transmission plants and the Kokomo casting plant. The purpose of this project is to lengthen the life of these manufacturing facilities as well as help keep almost 2,250 jobs.
Sergio Marchionne, CEO of Chrysler Group, said that for many years, Kokomo has been at the center of its powertrain strategy. He said that the potential of an additional investment reaffirms that position.
He said that the new front-wheel drive transmission and the eight-speed transmission (which will be produced in Kokomo) will “transform [its] future products and position them as leaders.”
Presently, the Indiana plant builds the 45 RFERWD transmission for Jeep Grand Cherokee and Liberty, as well as Dodge Dakota and Ram Trucks. Meanwhile, the second Indiana Transmission Plant makes the W5A580 five-speed transmission for the Chrysler 300, Jeep Grand Cherokee, Dodge Nitro and Charger.