Chrysler is to spend around $US27m on its Toledo (Ohio) machining plant.

Toledo Machining, which currently builds torque converters and steering columns, will divide the investment into two separate parts of the plant: $26.4m will go toward the manufacturing of a redesigned torque converter for automatic transmissions and an additional $1.5m will be used for production of a new steering column.

Chrysler said the torque converter investment would retain 164 jobs while the steering column investment would keep 44 hourly jobs in Toledo.