Chrysler may revive Indiana transmission plant image

Chrysler Group is again considering to start operating a newly built but never-used transmission plant in Tipton, Indiana.

The carmaker once planned to build transmissions in Tipton for its nearby factories. According to reports in the local newspaper, the Kokomo Tribune, Chrysler has requested tax incentives from state and local officials for the vacant factory.

A Chrysler spokesperson confirmed the request, but did not offer further details. “Chrysler Group will be working with the city regarding potential economic development incentives to assist us in making the business case for a possible future investment,” a company statement said.

“With the implementation of more than $1.3 billion in previously announced investments to produce the next generation of front- and rear-wheel drive transmissions, Kokomo remains at the center of the company’s powertrain offensive. We will continue to look for ways to improve our operations and our products to meet the new fuel economy standards and the needs of our customers,” the release added.

The plant was the site of an abandoned joint venture between the former Chrysler LLC and German supplier Getrag Corp. The two companies had planned to make dual-clutch transmissions for Chrysler vehicles but the venture fell apart in late 2008.