Chrysler plans to spend $300M retooling Kokomo plants

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Officials of Chrysler Group LLC unveiled plans Monday to spend about $300 million retooling its Indiana Transmission Plant 1 and Kokomo Casting Plant for the company’s “next generation” transmission.

Chrysler plans to build a fuel-efficient, 8-speed transmission that could be marketed to other car companies such as Audi and BMW, according to the Kokomo Tribune.

Manufacturing the transmission in Kokomo, however, depends on whether the city’s Common Council will offer Chrysler tax abatement on the company’s proposed investment.

Brian Glowiak, head of Chrysler’s government affairs office, told council members on Monday that the company is seeking a 10-year abatement on the manufacturing equipment and special tooling needed to produce the transmission, the Tribune said.

The measure passed unanimously on first reading, 8-0. It must pass on two more readings to become final. A public meeting on the abatement is set for 7 p.m. May 24 in council chambers.

Kokomo Mayor Greg Goodnight supports the proposal, according to the newspaper.

Chrysler officials estimate the investment will retain 1,184 jobs at the two plants.
 

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