Kokomo dodges Chrysler list of plant closings

Chrysler's transmission plants in Kokomo are not on a list of plant closings that parent DaimlerChrysler AG released this morning.

However it is unclear if layoffs of 13,000 Chrysler Group workers will spill into the city north of Hamilton County, where 2,600 are employed.

Kokomo might benefit from the changes. The company said it will plow $3 billion into new engines, transmissions and drive trains in order to make its vehicles more competitive.

Edgy Chrysler workers for days have anticipated today's announcement as the "Valentine's Day Massacre" for its drastic job cuts.

DaimlerChrysler said it will lay off 11,000 blue-collar and 2,000 white-collar workers from its Chrysler Group in a crash course to restore profits to the division by 2008.

An assembly plant in Newark, N.J., will close as a result of the downsizing.

The company also said it is looking into strategic options, but stopped short of saying the division would be sold.

Chrysler closed an engine block foundry on the Indianapolis southwest side in fall 2005, throwing 900 out of work. In 2003, the automaker sold its New Castle parts plant to Metaldyne Corp. of Plymouth, Mich.