Chrysler US will spend $43m on new equipment and tooling to expand its operations in Kokomo, Indiana.
Up to 379 of the new jobs will be filled by employees called back from layoff status, and 20 new hires in supervisory positions.
“As Chrysler Group works to implement the very robust business plan outlined on November 4, 2009, our facilities in Kokomo will play an integral role in achieving those objectives,” said Scott Garberding, senior vice-president and head of manufacturing. “This investment will keep our facilities at the forefront of innovation and advanced technology.”
The automaker said it would increase capacity at the Kokomo casting and transmission plants, adapt them to support production of the ‘World Engine’ and improve processes for the 62TE transmission programme.
The World Engine is built in Dundee, Michigan, including the 2.0- and 2.4-litre four-cylinder engines for the Chrysler Sebring, Jeep Compass and Patriot, and Dodge Avenger, Caliber and Journey.
The 62TE transmission is used in the Chrysler Sebring and Town & Country, and Dodge Avenger, Journey and Grand Caravan.