Chrysler plans to spend $843 million to build a nine-speed automatic transmission

Article by Christian Andrei, on May 11, 2011

Chrysler Group LLC expects to spend $843 million more for its transmission plant in Kokomo, Ind., to build a new, nine-speed automatic transmission for its front-wheel-drive vehicles. Chrysler made this announcement on the same day as General Motors Co.’s confirmation that it is making an investment of $2 billion in 17 facilities.

Of this amount, $204 million will be spent at a Toledo plant to build an eight-speed automatic transmission. GM aims to begin building the transmission by the end of 2011. However, Chrysler will begin to sell the Chrysler 300 and Dodge Charger with eight-speed transmissions in July.

Previously, Chrysler has revealed that it plans to invest $343 million at its Indiana Transmission Plants and Kokomo Casting to build the eight-speed. These facilities have 2,250 workers. On May 2, Chrysler Chief Financial Officer Richard Palmer said that its nine-speeds are expected to arrive by 2013.

This investment will become final as soon as the Kokomo City Council approves a tax abatement for Chrysler. In a statement, Chrysler CEO Sergio Marchionne said that Kokomo has long been at the center of its powertrain strategy.

The new Kokomo total of $1.1 billion represents Chrysler’s largest investment in one community in a single year. Chrysler exited bankruptcy and partnered with Fiat SpA in June 2009. Since then, Chrysler has invested nearly $3 billion in U.S. facilities. For the new transmissions, Chrysler has teamed up with German supplier ZF Group. Multi-speed transmissions boost fuel efficiency.

According to analyst Joe Phillippi of AutoTrends Consulting Inc. in Short Hills, N.J., Chrysler's image will be improved and will be brought upscale by putting a nine-speed in mainstream cars and minivans. Marchionne said that the new front-wheel drive transmission, together with its eight-speed transmission that will also be built in Kokomo, will transform its future products and make them leaders in the market.

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Remember Zenos Cars, a British carmaker that specializes in designing and building lightweight and high-performance sports cars? If you are wondering how the company is faring with their E10 lightweight...
by - January 21, 2017
Mercedes-Benz has revealed that in 2017, its series 124 coupé will be celebrating its 30th anniversary. While this itself is a significant event, it will also mean that this model...
by - January 21, 2017
BMW’s 550i xDrive has long been considered as one of the most successful business sedans in the world. For the brand, this may not be enough as it has officially...
by - January 20, 2017
Amazon is now moving beyond the four corners of online retailing. Only recently, the retail giant has been awarded a patent for its Road Network system. Since the patented technology...
by - January 20, 2017
The newest version of the Lamborghini Huracan is not a Superleggera, but a Performante. When Lamborghini filed for a patent for a new name, there were still debates whether this...
by - January 20, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries