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FCA putting $400 million into Kokomo expansion

by David Zatz on

Reports that Kokomo plants would get a new four-cylinder engine to cast appear to have been correct: the Indiana Economic Development Corporation  announced that FCA is investing $400 million to expand and retool its Indiana plants.

Kokomo Casting

The investment will, according to the Inside Indiana Business report, help FCA to make more GME T4 engines (currently sold in the 2.0 liter size); castings are expected to be done at Kokomo. While not mentioned in the story, it’s possible that transmission capacity will be increased as well. This would answer the question of how FCA can make more modern transmissions while keeping the old six-speeds going.

The state development fund is providing up to $65.7 million in various forms of tax credits and training grants; Duke Energy is offsetting some energy costs and the city of Kokomo is considering other incentives. The expansion may bring up to a thousand new jobs, according to Inside Indiana Business.

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