Chrysler said on Thursday (28 February) it would spend about US$374m to boost transmission production and add about 1,250 new jobs in north-central Indiana, making it the largest transmission installation in the world.
Chairman and CEO Sergio Marchionne said the company would spend $212m at Kokomo Transmission, Kokomo Casting and Indiana Transmission I plants for additional tooling and equipment to produce eight- and nine-speed transmissions; adding up to 400 new jobs, subject to market conditions.
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Work on the facilities is scheduled to begin in the second quarter 2013 with equipment and tooling to be installed in the fourth quarter.
At Tipton Transmission Plant Chrylser will spend $162m acquiring the former Getrag facility and establishing an additional assembly site for the nine-speed transmission; creating up to 850 new jobs, subject to market conditions. Production will begin in the first quarter of 2014.
Chrysler Group has now confirmed spending of over $1.6bn in Kokomo for production of the eight- and nine-speed transmissions as well as various other process improvements at all four area facilities. It currently employs over 6,100 in Kokomo.
Marchionne also noted the start of production of the Kokomo-built eight-speed transmission for the Jeep Grand Cherokee and Dodge Charger.
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