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According to foreign reports, the Chrysler Group announced that it will invest US$163 million to build a gearbox factory in Tipton. The plant will employ up to 850 employees after its operation, and Tipton officials approved it. A tax reduction policy worth nearly US$49 million for 10 years.
In 2007, Chrysler cooperated with Getrag Transmissions of Germany to build a transmission factory in Tipton. At that time, both parties planned to use the plant to produce dual-clutch transmissions. The total number of employees in the plant is expected to reach 1, 200 people, but the partnership between the two companies broke down the following year and the construction of the factory ceased.
Today, Chrysler said that it will use the plant to produce a series of new 9-speed transmissions. The company plans to start installing production equipment to the factory by June 2013 and plans to put it into operation by the end of 2014.
The Chrysler Group's recent rapid growth in the Indiana region has brought about 1,000 new jobs in Kokomo since it emerged from bankruptcy protection in 2009.
The Tipton plant is not Chrysler’s only expansion plan in north-central Indiana. A spokesperson for the company, Jodi Tinson, recently stated that the company is seeking additional tax cuts for Kokomo’s approval of another investment plan, but she has not. Further details are announced here.