6/11/10 CHRYSLER COMMITS $300M Kokomo plants to build new 8-speed transmission
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AUBURN HILLS, Mich. – Chrysler Group LLC plans to invest $300 million in two of its Kokomo, Ind., plants to build a new eight-speed automatic transmission that will help save jobs and improve fuel efficiency of future Chrysler vehicles.
Indiana Transmission Plant I
The investment, announced Wednesday, is Chrysler’s largest in the U.S. since the new company was formed in June 2009. It will fund the installation of equipment and special tooling to modernize Indiana Transmission Plant I and the Kokomo Casting Plant.
The project will extend the life of both manufacturing facilities and help retain jobs for nearly 1,200 UAW members. A tax abatement from the City of Kokomo helped to pave the way for Chrysler’s investment.
Chrysler Group has licensed the manufacturing rights from Friedrichshafen, Germany-based ZF Group to build the new eight-speed transmission beginning in 2013.
“The new eight-speed transmission that we’ll be producing in Kokomo will transform our future product line, but equally important, ensures the future viability of our Kokomo facilities and our dedicated workforce,” said Scott Garberding, Chrysler’s senior vice president and head of manufacturing.
The ZF 8-speed transmission. Click on the illustration to view a larger cutaway version with labeled parts.
“The support demonstrated by General Holiefield, vice president and director of the UAW Chrysler Department, and the entire UAW for World Class Manufacturing (WCM) is one of the primary reasons we continue to make significant investments in our Indiana facilities.” (WCM is Chrysler’s new production system.)
Garberding also praised the State of Indiana and Gov. Mitch Daniels, the City of Kokomo and Mayor Greg Goodnight as well as U.S. Reps Joe Donnelly, Dan Burton and the rest of the Indiana Congressional delegation for being “valued partners” as Chrysler works to bring the most technologically advanced and fuel efficient vehicles to market. “This investment would not be possible without their continued support,” he said.
The UAW’s Holiefield said the investment is good news for workers at Indiana Transmission Plant I and the Kokomo Casting Plant.
General Holiefield
“It’s heartening to see the local unions and employees in Indiana embrace the principles of WCM and, as a result, see the company continue to make significant investments in both new technology and the Kokomo facilities,” he said.
“This action will give Chrysler a head-start on a new transmission and will help secure the future for Chrysler UAW-represented employees.”
Workers at Indiana Transmission Plant I are members of UAW Locals 685 and 1302 while those at the Kokomo Casting Plant are members of UAW Locals 1166 and 1302.
The new transmission will contribute to an overall fuel economy improvement across the Chrysler, Dodge, Jeep and Ram Truck product lineup. More sophisticated and efficient than traditional five- and six-speed automatic transmissions, the new eight-speed is proof of Chrysler Group’s commitment to fuel economy.
Video explains the function of the new 8-speed transmission.
“The new eight-speed automatic transmission will offer our customers refinement and comfort while achieving greater fuel economy and performance,” said Paolo Ferrero, Chrysler’s senior vice president of powertrain.
“We look forward to integrating the new transmission into future Chrysler Group products and welcome its contribution to a corporate fuel economy improvement of more than 25 percent by 2014.”
The eight-speed improves fuel economy over five- and six-speed transmissions by helping the engine run at a more efficient RPM. The result is that the engine’s workload is reduced, diminishing its need for fuel. The new transmission also will reduce emissions.
Chrysler Group Powertrain engineers benchmarked the industry’s leading automatic transmissions to set functional goals. After working closely with ZF, the result is a seamless shifting eight-speed transmission without sacrifice.
Specific product information and timing for the new transmission will come at a later date.
Earlier this month, Chrysler Group announced that it would invest $43 million in new equipment and tooling to expand its operations in Kokomo to support production of the World Engine and improve processes for the 62TE transmission program. Chrysler’s Kokomo manufacturing complex also includes Indiana Transmission Plant II and the Indiana Transmission Plant.
Since 2007, Chrysler has invested nearly $1.3 billion to improve its powertrain operations at various plants in the U.S.
