The Kokomo Common Council moved Monday to secure a potential $300 million retooling of Chrysler Group LLC’s Indiana Transmission Plant.
Chrysler officials have yet to announce where they’ll build the company’s next-generation transmission, but Kokomo city officials hope Monday’s council decision will put the city in line for the investment.
Two weeks ago, Brian Glowiak, head of Chrysler’s government affairs office, told council members the company will seek a 10-year abatement on the manufacturing equipment and special tooling needed to produce the new transmission.
“It’s no secret that our industry is very competitive; cars are produced and sold throughout the global marketplace, and this investment can be made anywhere throughout the global marketplace,” Glowiak said at the council’s May 10 meeting.
Monday, there was no discussion as the council held the official public hearing and then passed a resolution confirming the abatement.
The council also confirmed a separate, five-year abatement on a proposed $43 million investment in the Kokomo Transmission Plant and the Kokomo Casting Plant.
Last month, Chrysler officials said the $43 million abatement would preserve 399 jobs at the KTP and KCP. Chrysler had called almost all of those workers back from layoff status by the time the abatement request was filed.
The city is abating machinery which will help Chrysler increase production of the 62TE six-speed transmission currently used in the Sebring, Avenger, Journey and minivans.
When the 62TE was launched at KTP, the plant was scheduled to produce 440,000 transmissions annually. With the investment, KTP can increase production to 531,000, Chrysler officials said.
With the $300 million abatement, Chrysler is proposing to retain up to 1,184 jobs at the ITP, through a retooling for what United Auto Workers union officials have said will be an 8-speed transmission.
“This is just the start of good things Chrysler has for Kokomo. The best is yet to come,” UAW Local 685 president Rich Boruff said at the May 10 meeting.