$530 million transmission plant in Tipton County will be completed in 2009

TIPTON - "Getrag, Chrysler, welcome to your Tipton County home."

Providing a bit of Hoosier hospitality, Commissioner Monty Henderson greeted Getrag Corporate Group and Chrysler Group following their announcement of plans to spend $530 million in a Tipton County facility which will produce fuel-efficient dual-clutch transmissions.

"It is the greatest single investment ever to be made in Tipton County - a half billion dollars," said Henderson, president of Tipton County Commissioners, from the steps of the courthouse Monday.

The plant will be built near the intersection of U.S. 31 and Indiana 28 with construction beginning June 27 and production slated to start in 2009.

The Tipton facility is part of Chrysler Group's $3 billion investment in facilities to manufacture more fuel-efficient powertrains with new engines, axles and transmissions.

"Together with our new partner, the Getrag Corporate Group, this $530 million investment in Tipton will create a state-of-the-art facility to manufacture fuel-efficient dual clutch transmissions," Richard Chow-Wah, Chrysler Group vice president manufacturing, told those assembled on the courthouse lawn. "When it is fully operational, the plant will employ approximately 1,170 full-time workers producing more than 700,000 of the best built transmissions for our Chrysler Group.

"Chrysler Group plans return to profitability in 2008 and this is a key part of sustaining that growth in the years ahead."

Chow-Wah also noted another 230 employees at Kokomo Casting and Transmission plants will be dedicated to producing and supplying parts for the Getrag facility.

The world's largest independent transmission manufacturer, Getrag Corporate Group employs 12,000 people at its 23 locations in Europe, Asia and North America. In 2006, Getrag produced three million transmissions and 900,000 axles with sales of 2.4 billion Euro.

Ulrich Kohler, Getrag Transmissions Corp. vice president manufacturing, emphasized three values that have led to the company tripling its production value over the last 10 years: precision, passion and partnership.

"These values reflect the spirit and action of all our employees. It shows our employees are the key of our success," he said. "We hope to build together with our employees, the UAW and Chrysler Group, a benchmark transmission plant."

The dual clutch transmission will provide an improvement of 5 to 10 percent in fuel economy, Chow-Wah said.

"This new dual clutch provides better shift quality, better driving comfort and, of course, enhanced fuel efficiency compared to our conventional technologies," he said.

While the work of all was important to landing the Getrag-Chrysler venture, Gov. Mitch Daniels paid tribute to officials of United Auto Workers in particular for the plant coming to Indiana.

"With the world to choose form, Getrag picked Tipton and picked Indiana," he said. "More than anything they picked these people and their commitment to build this new world-class, breakthrough set of products.

"Actually," he said turning to Region 3 director Mo Davison and local presidents Guy Barger and Andrew Mercker, "the greatest credit goes to you people and the people you represent."

While many wanted the plant to locate in Kokomo near to the present Chrysler plants, Barger said "we would never, ever say no to Tipton. Even by the jobs being located in Tipton County, Howard County and Kokomo will still benefit."

Fred Hoffman, a Chrysler official who deals with state and local governments, noted Kokomo Mayor Matt McKillip agrees with that assessment.

"Although he tried desperately to get this investment within the city limits of Kokomo, when we talked the other day, he said 'this is good for the whole region. It's good for central Indiana and this is good for the Kokomo area.'"

Davison recalled how the initial discussions involving, Chrysler, Getrag and dual clutch transmissions came to his office 15 months ago.

"We were talking about the future and the innovative dual clutch transmissions," he said. "Those talks paved the way for today's announcement."

Of the 1,170 jobs, 1,050 will be UAW-represented hourly employees with 120 management personnel coming from Chrysler and Getrag.

Hourly employees will fall under the UAW's national agreement with Chrysler and will receive "the same wages and benefits as the plants in Kokomo," Davison said.

The first opportunity for jobs will come out of Kokomo and the Indiana Labor Market Group, according to Davison and Chow-Wah.

"We won't have a major flow going back and forth for quality and efficiency reasons," the Chrysler Group VP said. "We will have an agreement to make sure this plant is well staffed first and then, if we're short, we'll have to look at alternatives at how and where we will get people from."

Kohler said Getrag will initially bring in 20 to 30 employees, including members of his transmission manufacturing staff, process engineers and a plant engineer.

"(They) will help us in launching and then go back to Germany. In the long term, we're talking about 100 percent local employees," Kohler said.

Daniels remembered working for Sen. Richard Lugar when Chrysler Corp. appeared headed for bankruptcy in 1978.

"That reminded me how much Indiana needs a great Chrysler Corporation and how much America needs a great Chrysler Corporation and the great products it's going to produce," the governor said.

"We are determined to make sure the company realized it picked the perfect place to build the best products in the world."