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$400 Million Expansion for Kokomo transmission plant- to be used for engines

Fiat Chrysler plans to invest in a $400 million expansion and retooling of one of it’s Kokomo, Indiana transmission plants – Transmission Plant II – in preparation for the production of a new engine.

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The company said that the production of this engine is being moved from Italy to the plant, which had been idled.

The workforce required is said to be around 1,000, meaning there will be new hiring.

“Our Indiana operations have historically been known as the largest transmission installation in the world,” Brad Clark, vice president and head of engine and transmission manufacturing for FCA North America, said in a news release. “With this potential investment, FCA has the opportunity to diversify our presence in the region. We look forward to working with the state and city of Kokomo to finalize our investment plans.”

The Indiana Transmission Plant II in Kokomo had opened in 2003 and built transmissions until August 2018. It was idled in the fall of 2019.

“I am looking forward to working with FCA as we finalize this plan for this investment in our community,” said Kokomo Mayor Tyler Moore. “Kokomo has always been a leader in making the best automotive products in the world. I appreciate FCA’s commitment to Kokomo as an employer and a community partner.”

The engine the plant will now be producing is the GMET4 engine. It is a 2.0 liter, four-cylinder turbo offered in the Jeep Wrangler and Cherokee.

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“A significant number of new technologies can be applied to this engine, making it relevant for the future,” chief operation officer Mark Stewart said. “It will play an important role in our plans to offer electric engine options across 30 nameplates that FCA will bring to markets around the world by 2022.”

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