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Chrysler confirms $843 million investment in Kokomo, Ind., facilities


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Chrysler confirms $843 million investment in Kokomo, Ind., facilities



Ahead of a visit to its Kokomo, Ind., facilities by President Barack Obama and Vice President Joe Biden, Chrysler today confirmed that it is planning to invest $843 million into its existing transmission manufacturing facilities in Kokomo for production of a new advanced front-wheel drive automatic transmission for future Chrysler Group vehicles.

With this announcement, Chrysler’s total investment in U.S. facilities would climb to nearly $3 billion since June 2009.

When combined with previously announced investments totaling $343 million in its Kokomo facilities, this potential new investment would make Kokomo the recipient of the largest investment -- $1.1 billion – in a single year in a single community, pending the Kokomo City Council’s approval of Chrysler Group’s tax abatement application on Dec. 13, 2010. The investment would fund the installation of equipment and special tooling to modernize the Indiana Transmission Plants and the Kokomo Casting Plant. The project would extend the life of these manufacturing facilities and help retain nearly 2,250 jobs.

Chrysler Group will be partnering with Friedrichshafen, Germany-based ZF Group on the next generation front-wheel drive transmission, which is making its designs and technology available to the Company and its Kokomo plants.

”For years, Kokomo has been at the center of our powertrain strategy and the potential of an additional investment reaffirms that position,” Sergio Marchionne, CEO of Chrysler, said in a statement. “When introduced, this new front-wheel drive transmission, along with the previously announced eight-speed transmission we will also produce in Kokomo, will transform our future products and position them as leaders in marketplace.



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Aruba, Jamaica ooo I wanna take you

Bermuda, Bahama come on pretty mama

Key Largo, Montego baby why don't we go


Off the Indiana Keys

There's a place called Kokomo, Indiana

That's where you wanna go to get away from it all

Well, maybe not.

Edited by SAmadei
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Chrysler gives Kokomo good news before Obama arrives

04:51 PM

Yahoo! Buzz

Kokomo, Ind., got the goodie bag today as President Barack Obama and Vice President Biden Joe dropped by Chrysler's plants there to promote the benefits of the auto bailout.

Just ahead of their arrival at the event attended by Chrysler/Fiat CEO Sergio Marchionne, Chrysler announced it will invest another $843 million in the local plants to build a new front-drive transmission.

While the benefits of the bailout might be debated elsewhere, it's hard to argue in Kokomo. The unemployment rate that was north of 20% at the depth of the recession was down to 12.7% in September, according to the Associated Press.

Chrysler said in a statement today that the money, to be spent from 2011 through 2015, will extend the life of its complex of transmission and casting plants in Kokomo and keep 2,250 people working.

Besides the $12.5 billion federal bailout that kept Chrysler going (the U.S. still holds 10% of the now Fiat-run company), the Kokomo area also benefited from about $400 million in federal stimulus money, including an $89 million Energy Department grant to help Delphi develop hybrid components.

Other bailout-related news today:

The Treasury Department said it has been paid $11.7 billion for selling 358.5 million shares of its General Motors stake and may get another $1.8 billion from options that GM IPO underwriters have to buy 53.8 million more shares within 30 days. The government now holds less than 50% of the company, down from the 60.8% it got in the $50 billion bailout.

GM will announce Wednesday that it will invest more than $160 million at plants in Flint and Bay City, Mich., and Defiance, Ohio, to support of its 1.4-liter, four-cylinder engine now used in Chevrolet's Cruze and Volt, the Detroit Free Press reported. Most of it will be spent in Flint to expand capacity by 50% to 1,200 engines a day early next year when the plant takes over making the engines, which now are being made at a GM plant in Austria. More than 100 jobs will be preserved by the investment, the Free Press said.



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