Chrysler announces $843 million plan to build second Kokomo transmission line

Kokomo — Chrysler Group LLC plans to invest $843 million in Kokomo, retaining 2,250 jobs and tipping the company’s investments in Kokomo over the past six months to more than $1 billion, the company announced today.

Chrysler issued a statement this morning as its executives, including CEO Sergio Marchionne, headed to Kokomo for President Barack Obama and Vice President Joe Biden’s visit.

The company is partnering with Germany-based ZF Group to manufacture a new generation of front-wheel-drive transmissions.

“For years, Kokomo has been at the center of our powertrain strategy and the potential of an additional investment reaffirms that position,” Marchionne said in a press statement. “When introduced, this new front-wheel drive transmission, along with the previously announced eight-speed transmission we will also produce in Kokomo, will transform our future products and position them as leader in marketplace.”

Chrysler announced in June that it would invest $343 million in Kokomo to begin manufacturing eight-speed transmissions as part of a partnership with ZF Group.