Chrysler Investing $266M into 8-Speed Production

Chrysler Investing $266M into 8-Speed Production

Chrysler is looking to expand production of its eight-speed automatic transmission.

The American automaker has announced that it’ll be investing $266 million into its Kokomo Transmission plant after the company had its 10-year tax abatement approved by elected officials in Kokomo, Indiana. Chrysler’s eight-speed transmission is built in Kokomo under license from ZF and will be used in all of the automaker’s rear-wheel drive vehicles except for the Dodge Viper and certain heavy-duty Ram pickup trucks.

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According to Chrysler, the eight-speed transmission helps improve fuel economy by nine percent compared to the older five- and six-speed transmissions. The company has invested over $1.5 billion into its Kokomo plants and is now the world’s largest producer of transmissions with about 7,600 employees.

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[Source: Automotive News]

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