Chrysler to invest $43 million in Indiana powertrain facilities

Chrysler Group LLC CEO, Sergio Marchionne

In a move that will create nearly 400 jobs, Chrysler Group LLC said yesterday that it plans to invest $43 million on the expansion of its powertrain operation in Kokomo, Ind.

The money will go towards the installation of new equipment and tooling at the Kokomo plant, which is responsible for tooling and casting to support production of the World Engine and improve processes for the 62TE transmission program used in the Chrysler Sebring, Dodge Avenger, Dodge Journey, and Dodge Grand Caravan.

“As Chrysler Group works to implement the very robust business plan outlined on Nov. 4, 2009, our facilities in Kokomo will play an integral role in achieving those objectives,” said Scott Garberding, Senior Vice President and Head of Manufacturing, Chrysler Group LLC. “This investment will keep our facilities at the forefront of innovation and advanced technology.

In addition to the recommissioning of 379 laid-off workers the move will add 20 new jobs.

Since 2007, Chrysler has invested almost $1 billion in its powertrain operations. In December, the company announced a $179 million investment in order to build a small engine that was developed by Italian partner company, Fiat SpA.

– By: Stephen Calogera