Chrysler Group is pouring $300 million into the company's manufacturing facilities in Kokomo, Ind., to build its new eight-speed automatic transmission for future Chrysler Group vehicles.


This is the largest investment the company has made in the U.S. since June 2009, and it was aided by the approval of a tax abatement from the city of Kokomo. The investment will fund the installation of equipment and special tooling to modernize Indiana Transmission Plant I and the Kokomo Casting Plant. The project will extend the life of both manufacturing facilities and save nearly 1,200 jobs.

Chrysler Group has licensed the manufacturing rights from Friedrichshafen, Germany-based ZF Group to build the new eight-speed beginning in 2013. Included in this agreement is the purchase of transmissions manufactured by ZF.

"The new eight-speed transmission that we'll be producing in Kokomo will transform our future product line, but equally important, ensures the future viability of our Kokomo facilities and our dedicated workforce," said Scott Garberding, senior vice president and head of manufacturing, Chrysler Group.

The new transmission will contribute to an overall fuel economy improvement across the Chrysler, Dodge, Jeep and Ram Truck product lineup, the company said.

"The new eight-speed automatic transmission will offer our customers refinement and comfort while achieving greater fuel economy and performance," said Paolo Ferrero, senior vice president of powertrain, Chrysler Group. "We look forward to integrating the new transmission into future Chrysler Group products and welcome its contribution to a corporate fuel economy improvement of more than 25 percent by 2014."