Stellantis to spend nearly $230M to build electric car transmissions in Kokomo

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Automotive manufacturer Stellantis (formerly Fiat Chrysler) on Tuesday announced plans to invest $229 million to retool its Kokomo plants to produce electric vehicle transmissions.

More than 660 employees in Kokomo will be retrained and retained with the move to produce the electric transmissions.

The Indiana Economic Development Corp. said it would offer Stellantis up to $19.5 million in conditional tax credits and $300,000 in training grants in return for the investment.

The company’s Kokomo Transmission, Kokomo Casting and Indiana Transmission plants will shift to produce a fourth-generation eight-speed transmission The transmissions will be used in Jeep, Ram, Chrysler and Dodge cars, and will have the flexibility to be paired with traditional internal combustion engines, as well as mild hybrid and plug-in hybrid propulsion systems.

The facilities in Kokomo currently assemble transmissions for a variety of Jeep, Dodge and Chrysler vehicles. They have been operating in the city since 1956.

A goal for the company is to have electric vehicles make up 40% of its sales by 2030.

“This investment and this transmission represent an important stepping stone in getting us to 2030 and further expanding our battery electric offerings,” Brad Clark, head of powertrain operations for Stellantis, said in a written statement.

Stellantis executives were joined by Gov. Eric Holcomb and Secretary of Commerce Brad Chambers at the announcement event in Kokomo on Thursday.

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4 thoughts on “Stellantis to spend nearly $230M to build electric car transmissions in Kokomo

  1. These are not battery electric vehicle transmissions. These are really transmissions for internal combustion engines that happen to have batteries for hybrid power. Today, battery electric vehicles use single-speed transmissions that are typically built into the motor driving the wheels, though this may change to continuously variable transmissions in time.

    1. I drive a hybrid and love it but it is only the short-term future until internal combustion engines are fully regulated out.

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