The investment will be channeled toward machinery and equipment, much of which will focus on hybrid and other next-generation automotive technology, said Kokomo development director Debra Cook.
"It looks as if they're planning on staying," Cook said. "It's very encouraging."
The news comes as the company's parent, Delphi Corp., struggles to emerge from Chapter 11 bankruptcy protection.
Troy, Mich.-based Delphi announced last month that it would lay off 600 salaried employees in its Electronics & Safety Division, with most of the layoffs coming from Kokomo.
About 2,500 of the division's 3,340 salaried workers are in the city north of Indianapolis.