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.
The automaker has requested incentives to launch production in a nearly 800,000-square-foot plant that's been vacant since being built four years ago.
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.
From mini cars to monster pickups, sales of vehicles charged higher in June and eased concerns that Americans would be turned off by slower hiring and other scary headlines.
The U.S. auto industry and Kokomo have staged an amazing comeback. But the resurrection of U.S. automakers has done little to resolve a deep political divide over the bailout.
U.S. consumers, who set records for retail purchases during Thanksgiving weekend, helped boost U.S. auto sales in November to what is likely to be their fastest pace in more than two years.
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.
Kokomo's fortunes have been entwined with the auto industry since 1894, when Elwood Haynes invented one of the first automobiles in the United States there. Since the 1930s, when then-Delco (later Delphi) located there, followed by General Motors and Chrysler, the auto industry has been the town's bread and butter.
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.
Investors who had challenged the bankruptcy sale, including the Indiana State Police Pension Trust, had argued that Treasury
Secretary Timothy Geithner violated the Constitution by using TARP money to finance the sale, and had their arguments overruled
in the appeals court.