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Stellantis Retools Kokomo, Indiana, Transmission Plant

To support its goal of achieving 40% low-emission vehicle sales in the U.S. by 2030. Stellantis, formerly Fiat Chrysler Automobiles, plans to invest $229 million at its plant in Kokomo, Indiana.

The company recently rolled out its long-term electrification strategy, which includes a commitment to invest $35 billion globally through 2025 in electrification and software.

Stellantis’ investment will support the retooling of the Kokomo Transmission, Kokomo Casting, and the Indiana Transmission plants to produce electrified, next-generation, eight-speed transmissions, which will have the flexibility to be paired with internal combustion engines as well as mild hybrid and plug-in hybrid propulsion systems for a number of Stellantis vehicles. The electrified transmission will also deliver improved fuel economy, provide pure-electric range and help vehicles meet future emission regulations.

“This investment and this transmission represent an important stepping stone in getting us to 2030 and further expanding our battery electric offerings,” said Head of Powertrain Operations for Stellantis, Brad Clark. “This new eight-speed is the ‘multi-tool’ of transmissions. It is a versatile transmission that can be adapted for a variety of applications, allowing us the flexibility to adjust our production as consumer demand for electrified vehicles grows over the next decade. It also offers consumers the opportunity to get familiar with this technology and explore all of the benefits that can come from electrification. As our industry continues to change, our focus must continue to be on our most valuable asset – our people. This transmission program will bring new opportunities for our current workforce, as well as the manufacturing workforce of the future.”

Indiana Economic Development Corporation (IEDC) committed an investment in Stellantis of up to $19.25 million in the form of conditional tax credits from the Hoosier Business Investment (HBI) tax credit program. The IEDC will also offer up to $300,000 in training grants. These tax credits are performance-based, meaning the company is eligible to claim credits once investments are made and employees are trained. The city of Kokomo will consider additional incentives.

Stellantis employs nearly 88,000 people in North America, including more than 7,300 throughout its Indiana operations. A portion of the company’s investment will go toward retaining, retraining and transitioning 662 Kokomo employees into hybrid transmission manufacturing roles, which would be met with increased wages, subject to the 2019 UAW Collective Bargaining Agreement.

“It’s an incredibly exciting day for the state of Indiana as we celebrate Stellantis’ major investment in its Kokomo operations,” said Governor Eric J. Holcomb. “Not only is Stellantis investing in the future of the auto industry, but the company is also in skilling up hundreds of Hoosiers to meet the demands of an evolving workforce. It’s because of businesses like Stellantis, action taken by industry leaders and the General Assembly to advance electrification strategies, Indiana is positioned to be a leader in the future of mobility.”

The news comes a year and a half after the company announced plans to diversify its Kokomo manufacturing operations with a $400 million investment to expand and retool its Indiana Transmission Plant II for production of its new GMET4 engine.

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