Kokomo — Chrysler Group LLC is looking to make another investment in its Kokomo plants, this time seeking a tax abatement for a $300 million investment.
The Kokomo Common Council will hear the abatement request at its meeting today at 7 p.m.
The investment would accommodate the installation of manufacturing and special tooling equipment at the Kokomo Casting Plant and Indiana Transmission Plant I. The goal is to help the plants prepare for a new advanced automatic transmission.
“We are extremely pleased to hear that Chrysler is considering this venture,” said Kokomo Mayor Greg Goodnight. “It shows that the company is very committed to its Kokomo facilities. It also demonstrates the strong, long-time partnership between Chrysler and the city of Kokomo.”
Jodi Tinson, of Chrysler’s manufacturing and labor communications, confirms the company has filed a tax abatement application with the city and “although an application has been filed, Chrysler Group has no announcement regarding its operations in Kokomo and continues to study a variety of options to support the robust product plan outlined on Nov. 4, 2009.
“The company appreciates the support of the city of Kokomo and looks forward to continuing a partnership that will see the Chrysler Group once again become a successful and competitive enterprise,” he said in a release.
In April, as part of an Economic Revitalization Area expansion plan that will increase the local work force by 399, Chrysler asked the city to abate property taxes on $43.3 million worth of new machinery, which the company said it plans to bring to its Kokomo Transmission Plant.
The news came the day after Chrysler CEO Sergio Marchionne presented a five-year plan for Fiat SpA, the Turin, Italy-based firm that operates Chrysler.
As part of that plan, Chrysler will produce a third of the products for both companies; Jeep will become a global brand and Fiat’s Alfa Romeo will re-enter the American market as a full-line brand and be sold with Chrysler products, Marchionne announced.
Of the 399 employees, 379 had all ready been recalled from lay-off status at the time of the announcement, said Rich Boruff, president of United Auto Workers Local 685. The remaining 20 employees will be supervisory positions.
Boruff said the plan is to use the investment at KTP to increase production of the 62TE six-speed transmission that is currently used in the Sebring, Avenger, Journey and minivans.
When the 62TE was launched at KTP, the plant was scheduled to produce 440,000 transmissions annually. With the investment, KTP can increase production to 531,000.