The population at Chrysler Group’s Kokomo, Indiana plant will increase by 1,250 by 2015. This plant currently employs 6,100.
Chrysler announced on Thursday that it will invest $374 million to expand its operations in north central Indiana, including a $212 million to install additional tooling and equipment to produce eight- and nine-speed transmissions in three of its Kokomo plants. Work on the facilities is expected to begin in the second quarter of this year, with equipment and tooling installation anticipated to begin in the fourth quarter.
In addition, the company will acquire the former Getrag facility in Tipton, Ind., and invest $162 million to establish an additional assembly site for the nine-speed transmission. The site is scheduled to be operational by the end of 2014.
With this announcement, Chrysler Group has confirmed total investments of more than $1.6 billion in Kokomo for production of the eight- and nine-speed transmissions as well as various other process improvements at all four facilities in the area.
Indiana’s motor vehicle industry is the second largest in the U.S., according to the U.S. Bureau of Economic Analysis, producing more than $9.8 billion in goods.
With industry leaders such as Chrysler, Honda, Toyota and Subaru, more than 630 automotive companies call the Hoosier State home.
“I want to thank the state and local officials who worked with us to make these investments possible. Together, and with the support of our employees, I can assure you that it is truly a privilege for Chrysler to be able to contribute to the growth and development of Indiana,” said Sergio Marchionne, CEO of Chrysler Group.
The Indiana Economic Development Corporation offered Chrysler Group, LLC up to $11,500,000 in conditional tax credits and up to $200,000 in training grants based on the company’s job creation plans. The cities of Kokomo and Tipton have approved additional tax abatement.
