By JOHN DEMPSEY, Kokomo Tribune business writer
With Getrag's new transmission plant in Tipton County finally a reality, the question arises about the future of Chrysler Group's Kokomo Transmission Plant.
Built in 1956, the 3.1 million-square-foot facility is the oldest of Kokomo's four Chrysler plants and employs 3,168 people - almost half of the automaker's 6,342 jobs in Kokomo. The plant received the Harbour Report Award in 2005 and 2006 as the top-producing transmission plant in North America.
The Getrag plant will produce a six-speed, front-wheel drive, dual-clutch transmission that will compete directly with the 62TE, a six-speed, front-wheel drive transmission that KTP produces.
Richard Chow-Wah, Chrysler Group's vice president of manufacturing, said the plant's immediate future is secure.
"There are no immediate plans to shut down KTP or to shutter that plant. Our product plan, which goes out the next five years, includes that we still use rear-wheel drive transmissions that are produced there," he said, "and there is still some production of four-speed transmissions and six-speed transmissions.
"It's not necessarily a shutter of the plant, but a transition move. If you continue to work in this business, you never know what will come up next and how we can utilize that facility."
In fact, he said, KTP and Kokomo Casting Plant will have a stake in the Tipton plant.
"We announced a little use for some of the Casting Plant and KTP to make components for this facility," Chow-Wah said Monday.
Chrysler will dedicate 230 employees at the two plants to supply parts for the Getrag plant.
Guy Barger, president of United Auto Workers Local 685, which represents hourly workers at KTP and Indiana Transmission Plants I and II, knows KTP's future has been questioned.
"Anytime you have a new product out there, it's brought up. You have a product that has more advanced technology than the product you are building, you have the chance of losing that product," he said.
"I'm not convinced we'll have a demise at KTP," Barger said Tuesday afternoon. "We have other work we're trying to source in there. We'll be machining parts and cases for Getrag and there's other work that could come in."
One thing that will keep KTP up and running, he said, is to shop its products outside of Chrysler in order to sustain the plant's work force.
"We have to become a global supplier. If Chrysler can no longer use our products, we'll shop them to other car companies, to global manufacturers," he explained. "We make a very economical four-wheel drive transmission [41TE] here that is priced to compete in the global market."
He pointed to the letter of intent Chrysler signed with Chery Automobile Co. of China to produce and sell a small car in the United States.
"We can prolong the life of our products if we can get Chery Motors and some other global car companies to buy our transmissions. It will definitely help us," he said. "We want the 41s considered for Chery. With Chery, I'm optimistic we'll produce some transmissions in some volume to be sent to China.
"I asked about that deal [Monday]. It's still in the works. ... It's up to the Chinese government for approval."
These same concerns for KTP came up when ITP I was built in 1997, he said.
"It was a Chrysler plant, but we felt OK with it. As the transmissions came on line at ITP I, we realized it would affect our volume at KTP," Barger explained. "They were both rear-wheel drive transmissions.
"ITP transmissions went into trucks and SUVs. We were able to maintain volumes at KTP to coincide. Instead of reducing volume, we were able to hold and expand."
Getrag locating in Tipton, he said, eases some concerns.
"I'd be worried if we didn't get Getrag. If we didn't get that, I'd be worried about what we did wrong," he said.
Chow-Wah would not speculate on Kokomo Casting Plant's chances of being part of the supply chain for Chrysler's new Phoenix six-speed engine.
"Obviously," he said, "everything is up for being competitive and high quality in terms of sourcing Phoenix. That has not been completely decided."