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Input clutch assemblies for nine-speed transmissions, ready for the main assembly line at Indiana Transmission Plant I.

Fiat Chrysler Eyes Indiana Expansion

Jan. 28, 2020
The automaker's Kokomo Casting and Transmission complex is the site of a planned, $400-million investment to introduce production for the GMET4 four-cylinder engine.

Fiat Chrysler Automobiles is planning to increase four-cylinder engine production, according to remarks by Indiana Governor Eric Holcomb this week, who reported the automaker's plans for a $400-million capital investment program at metalcasting and transmission manufacturing complex in Kokomo, IN.  

Fiat Chrysler has not detailed its proposal. According to FCA North America's Brad Clark, v.p. and head of Engine and Transmission Manufacturing, "We look forward to working with the state and city of Kokomo to finalize our investment plans."

The automaker has four separate operations in Kokomo, IN:
- FCA Kokomo Casting produces transmission and transaxle cases, and aluminum transmission components;
- FCA Kokomo Transmission produces four-, six- and eight-speed transmissions; machined components for nine-speed transmission;
- FCA Indiana Transmission I produces six- and nine-speed transmissions; and
- FCA Indiana Transmission II produces components for eight-speed transmissions.

The state's economic development agency reported the new transmission capacity would support production of the GMET4 engine, a four-cylinder design that is manufactured by FCA in Trenton, MI.  The Indiana Economic Development Corp. said the new production at Kokomo will require more than 1,000 workers by the end of 2021, positions to be filled current FCA current employees and new hires.

Construction at the plant would begin later this year.

IEDC has offered FCA up to $3.5 million in conditional ("performance-based") tax credits and up to $500,000 in training grants, based on the automaker's job creation plans. It also offered up to $31.7 million in conditional tax credits from an investment tax credit program, and up to $30 million in assignable redevelopment tax credits, meant to incentivize businesses to redevelop vacant property.

Also, IEDC noted that the city of Kokomo is considering additional incentives, and Duke Energy has approved additional incentives to offset a portion of the FCA plant's energy costs.