Chrysler will invest an additional $100 million in transmission project



by Joseph Szczesny on Dec.15, 2010

The next-generation Chrysler 300 sedan will be one of the first models to get a new ZF-supplied 8-speed gearbox which is being rushed into production.

Chrysler Group LLC has disclosed it plans to pull ahead the production of 8-speed transmissions that will replace aging Mercedes gearbox designs and help the maker meet strict new fuel economy standards.

The automaker has confirmed that it is looking to invest another $85 million in its Kokomo Transmission Plant (KTP) for a variety of powertrain improvements.

Chrysler Group notified city officials of the potential new investment at the Dec. 13, 2010, Kokomo City Council meeting. At the same meeting, Chrysler Group also requested the transfer of the previously approved tax abatement certificate on the announced $300 million investment from Indiana Transmission Plant to KTP to facilitate the production of the next generation eight-speed transmission.

“We’re moving eight-speed production to KTP because we’re pulling production ahead and the timing worked better at KTP,” said Brian Harlow, Vice President and Head of Powertrain Manufacturing, Chrysler Group LLC. “This move opens up space at ITPI to prepare the plant for production of the front-wheel drive transmission, which we announced in November,” he said.

The expansion is slated for early completion, suggesting the 8-speed transmission could be ready for distribution in the second half of 2012.

It is unclear exactly how widely the maker will apply the new technology. The new gearboxes will clearly cost more than the four, five and six-speed transmissions used elsewhere. But the new 8-speed also could save money, in the long-run, by delivering a significant – and immediate – boost in mileage. Like its competitors, Chrysler is struggling to ensure it can meet the government’s 35 mpg Corporate Average Fuel Economy target set for 2016.

At the same meeting meeting, the Kokomo City Council also approved Chrysler Group’s tax abatement application on the $843 million investment for production of the front-wheel drive transmission.

“We are grateful to Mayor Goodnight and the Kokomo City Council for their continued support of Chrysler Group,” said Harlow. “These investments demonstrate our commitment to this community and our workforce. We look forward to continuing a partnership that will secure Kokomo’s position as the center of our powertrain strategy.”

 

ZF is a German auto parts supplier.



Chrysler is liscening their transmission for assembly in the US, a common practice globally.

 

im torn... ZF makes VERY nice stuff... but Chrysler... Chrysler makes stuff that breaks

 

is it still true that this tranny is going in virtually everything they can fit it in, including the diesel trucks?

 

Somewhere out there lies a joke about Chrysler's crappy transmissions and the picture above of women making them.

 

When I read the part about the transmission being rushed through production I kind of immediately thought, "and its going to rush to break and damage their image..."

 

I wish her the best when one of those big loop earrings, get caught in one of the machines, seriously why would you need to wear that at a job like that.

 

Every machine shop i've ever seen would NEVER allow those to be worn while working.

 

that's the first thing i noticed was that big hazard.

wasn't Chrysler the one that had the employees smoking pot/drinking in the parking lot?

 

Doesn't that happen just about everywhere at all kinds of jobs??

 

sure does

 

So Chrysler will utilize a transmission I probably can't destroy for once!? Also, I WANT one. 8 speed? Nice.

 

WHOA WHOA WHOA...let's not get ahead of ourselves here. No one said anything about durability. Just an insane number of "gears".

 

But but but...it's GERMAN! lol

 

Hell... I'd hit it.

 

8 speed, nice.

 

Who need 8 gears? I don't think its going to really help the fuel economy just be annoying when it changing gears all the time.

 

german parts. lil hotty-mc-massive-earrings is putting it together..

 

And i thought the 6-speed GMs were crap. Every car/truck i've driven with one drives me nuts. I swear GM has no clue how to program a transmission. My wife's CTS is the only car that is decent to drive with it. The Silverado has no idea what it is even doing, it shifts through 4 gears just trying to pull a small hill.

 

On a funny note I believe that this is the project that I lost my job over at the end of 2008.