CHICAGO Chrysler Group
LLC will invest nearly $374 million to boost its transmission
production in Indiana, adding about 1,250 jobs.
The Auburn Hills, Mich.-based
automaker will put $212 million into its Kokomo Transmission,
Kokomo Casting and Indiana Transmission I plants, installing
additional tooling and equipment to produce eight- and
nine-speed transmissions, chairman and chief executive officer
Sergio Marchionne announced. Work on the three facilities is
scheduled to begin in the second quarter, with equipment and
tooling to be installed in the fourth quarter.
Chrysler also plans to spend
$162 million to build an additional assembly line for
nine-speed transmissions at its site in Tipton, Ind., with
production scheduled to begin in the first quarter of 2014.
Chrysler acquired the Tipton
land and building from Getrag Transmission Manufacturing LLC,
with which it planned a $530-million transmission plant back in
2007. However, construction was halted in mid-2008 as the two
companies were working out a supply agreement, and Getrag filed
for Chapter 11 bankruptcy protection that November, citing
Chryslers termination of contractual agreements related
to the factory.
"These new investments and new
jobs are a testament to the determination we all
hadmanagement, labor and our work forceto making
the best of the second chance we were given in 2009," United
Auto Workers regional director Ken Lortz said in a statement,
referring to the taxpayer bailout that helped keep the company