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Chrysler returning to Tipton?

by David Zatz on

In 2007, Chrysler and Getrag Transmission broke ground on an 800,000 square foot factory in Tipton County, Indiana. The deal fell through in 2008, with Cerberus choosing to abandon the partnership. The property was sold to Abound Solar, which, amidst subsidized competition from China, filed for bankruptcy this year before making any panels there.

Now, the Kokomo Tribune has reported that Chrysler requested a ten-year tax abatement from the city; Chrysler spokesperson Jodi Tinson confirmed the request, but said that “Kokomo [transmission plant] remains at the center of the company’s powertrain offensive.” The request will be discussed at a December 17 meeting of city commissioners.

W.W. Reynolds purchased the building in 2010, and is now asking $39.5 million for it; the cost of the building, which was never completed, was estimated at $100 million, according to the Tribune, and would have cost $530 million including tooling and assembly equipment, according to Chrysler releases in 2007.  The plant was to build Chrysler-engineered dual-clutch transmissions, intended to appear first in trucks, and then in minivans; in June 2007, it was forecast to be completed in 2009 and to employ 1,170 people. Construction stopped on December 21, 2007 for a contract renegotiation.

Allpar reported on November 1, 2012, that Chrysler was rumored to be buying or bidding for the plant.

(Thanks, KCP Worker.)

David Zatz founded Allpar in 1998 (based on a site he had begun in 1993-94), after years of writing reviews for retail trades. He has been quoted by the New York Times, the Daily Telegraph, the Detroit News, and USA Today. Before making Allpar a full-time career, he was a consultant in organizational psychology. You can reach him by using our contact form (much preferred) or by calling (313) 766-2304


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