Chrysler might begin production of nine-speed automatic transmission next year at Indiana plant, if it gets final approval of a 10-year tax break.
Yesterday, December 17th, authorities in Tipton County, Indiana offered Chrysler a preliminary approval of the tax abatement. The automaker said that if the Tipton City finalizes the tax deal today, it will invest $162 million in a transmission plant there. Chrysler seeks a similar tax abatement in Kokomo, Indiana, where the company has four transmission facilities. The plant in Tipton County is located at about 15-20 miles from the plants in Kokomo.
Chrysler announced it will invest $1.3 billion in the Kokomo plant to meet increasing demand for transmissions in its vehicles, which saw a sales increase of 20% to 1.46 million through November in the US. Chrysler not only plans to boost production of its transmission production in Indiana, but it also plans to begin production of the industry’s first nine-speed transmission, which will be used for front-wheel-drive vehicles, such as the next-generation Chrysler 200 and the Dodge Dart.
“While we appreciate their support, there are several more steps that need to be completed before we can fully confirm our plans for Tipton,” said Chrysler in a statement.