Chrysler confirms state investment of $374 million
Chrysler Group LLC plans to invest a total $374 million and add 1,250 jobs in Kokomo and Tipton, the company confirmed Thursday.
Chrysler Group LLC plans to invest a total $374 million and add 1,250 jobs in Kokomo and Tipton, the company confirmed Thursday.
Chrysler Group LLC is betting on huge sales gains to justify the more than $374 million it is considering investing in Kokomo and Tipton to make a new line of nine-speed transmissions.
Chrysler Group LLC on Monday night said it was planning to spend as much $212 million on another expansion in Kokomo that could add more than 400 jobs.
Tipton officials approved a 10-year tax abatement worth $2.5 million to help the company launch production in a nearly 800,000-square-foot plant at U.S. 31 and State Road 28, about 25 miles north of Carmel.
Chrysler Group LLC is seeking tax incentives for its transmission plant in Kokomo at the same time it's asking Tipton County officials for similar incentives on a vacant plant.
The automaker had claimed in a complaint to the state that Duke acted in "draconian" fashion by holding onto the seven-figure deposit for service at its Kokomo plant since 2009.
The automaker is asking the Indiana Utility Regulatory Commission to look into its dispute with Duke Energy—and order the utility to return a deposit it required to keep the power on at Chrysler's Kokomo plants.
The new four-year contract, which still must be ratified by workers, would create 2,100 jobs. Chrysler also agreed to invest $4.5 billion in its plants under the deal. Last year, the automaker announced plans to spend nearly $1.3 billion to update its facilities in Kokomo.
The decision has little impact on the thousands of Indiana GM and Chrysler workers. As part of 2009 government bailouts, the two firms and their workers had to agree not to strike over wages.
Chrysler Group LLC said Tuesday it plans to invest an additional $85 million in its Kokomo transmission plant. The money is in addition to the recently announced $1.2 billion investment in other facilities in the north-central Indiana city.
After a three-decade absence from the market, Fiat is coming back to the Indianapolis area with new dealerships in Carmel and Greenwood.
The automaker says the investment will help retain 1,200 jobs, pave way for production of new eight-speed transmissions.
Investment in transmission and casting plants, however, hinges on city’s ability to offer tax abatement.