Chrysler Group LLC will invest $300 million into the company's existing transmission manufacturing facilities in Kokomo, Ind., to accommodate a new highly fuel-efficient eight-speed automatic transmission for future Chrysler Group vehicles.
The largest investment in the U.S. since the new company was formed in June 2009 was aided by the approval of tax abatement from the city of Kokomo. The investment will fund the installation of equipment and special tooling to modernize Indiana Transmission Plant I and the Kokomo Casting Plant. The project will extend the life of both manufacturing facilities and help retain nearly 1,200 jobs.
Chrysler Group has licensed the manufacturing rights from Friedrichshafen, Germany-based ZF Group to build the new eight-speed beginning in 2013. Included in this agreement is the purchase of transmissions manufactured by ZF.
The new transmission will contribute to an overall fuel economy improvement across the Chrysler, Dodge, Jeep® and Ram Truck product lineup. More sophisticated and efficient than traditional five- and six-speed automatic transmissions, the new eight-speed is proof of Chrysler Group's commitment to fuel economy.