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Finally official: Tipton, Kokomo transmissions

by David Zatz on


Last year, Allpar reported that Chrysler had been working with government officials on tax abatements for a plant in Tipton, Indiana, which would bring an estimated 850 new jobs, (according to the Indy Star). The site is a plant built and then abandoned by a Getrag and DaimlerChrysler joint venture; the abatement was for the tooling, which would cost $49 million. The total investment would be $162 million; the plant itself had an asking price of under $40 million.

Chrysler’s Jodi Tinson said the company needed more transmission production capacity, given recent sales increases; insiders said it would produce nine speed automatics, starting in 2014. Chrysler plans to make six-speed, eight-speed, and nine-speed automatics in Kokomo, as well.

While Chrysler was the first to announce use of the nine-speed automatic, Land Rover is the first company to unveil a vehicle using it, at the Geneva Auto Show this week. It is still a race to see which company will produce cars for actual sale, using the nine-speed; Chrysler is building it in-house, while Land Rover is buying it directly from ZF.

Today, Chrysler officially opened the Kokomo Transmission Plant to the media for a tour and official announcement of the opening of the Tipton plant. The company confirmed that the $162 million project will create 850 direct jobs as well as 400 related jobs at three other factories. The Tipton facility is around half an hour south of the Kokomo Transmission Plant and associated casting works, where 6,100 people work; the County Council agreed to a ten year tax abatement of around $2.5 million in total.

Chrysler is also investing $212 million in the Kokomo complex, and adding up to 400 new jobs. Work is scheduled to begin there in the second quarter of 2013 and finished by the end of the year.

Thanks to KCP Worker.

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