DaimlerChrysler considers U.S. city for new plant

The Associated Press |

KOKOMO, Indiana DaimlerChrysler says it is considering a U.S. city where it already has two large manufacturing complexes for a new$560 million (€441 million) transmission plant. The new plant in Kokomo would be part of a joint venture with Getrag Corporate Group of Germany for a new line of wet dual clutch transmissions, Chrysler spokesman Dave Elshoff told the Kokomo Tribune for a story Wednesday. "We are developing a business plan for a new transmission product," Elshoff said. "That business plan will require a number of things. It will require the approval of DaimlerChrysler's board of management, state incentives and a local UAW agreement." Elshoff said the company had reached an agreement with the United Auto Workers to move forward with the project. Guy Barger, president of UAW Local 685, which represents workers at the company's Indiana Transmission Plant in Kokomo, said he would not comment on the agreement. "Chrysler will make announcements about its products," he said. "As far as I know, Chrysler hasn't made any announcement." The memorandum of understanding between DaimlerChrysler and the UAW obtained by the Tribune says companies would invest $560 million (€441 million) in a new plant, preferably near Indiana Transmission Plants I and II, along U.S. 31 on the city's north side. That spending would include tooling, machining and equipment, with the plant opening in 2009. Chrysler owns about 280 acres (112 hectares) of land near the Indiana Transmission Plants, which have about 2,600 workers and have opened since 1998. About 4,200 people work at the company's Kokomo transmission and casting plants in the city some 40 miles north of Indianapolis. The memorandum says that Chrysler "is moving forward with Getrag to procure land, apply for permits, and finalizing government incentives." Jason Hester, the city's development director, said the project would be welcome news. "It would mean new tax revenues and jobs for the community," he said. "Anytime there is a new investment being made in community, it makes us happy." KOKOMO, Indiana DaimlerChrysler says it is considering a U.S. city where it already has two large manufacturing complexes for a new$560 million (€441 million) transmission plant. The new plant in Kokomo would be part of a joint venture with Getrag Corporate Group of Germany for a new line of wet dual clutch transmissions, Chrysler spokesman Dave Elshoff told the Kokomo Tribune for a story Wednesday. "We are developing a business plan for a new transmission product," Elshoff said. "That business plan will require a number of things. It will require the approval of DaimlerChrysler's board of management, state incentives and a local UAW agreement." Elshoff said the company had reached an agreement with the United Auto Workers to move forward with the project. Guy Barger, president of UAW Local 685, which represents workers at the company's Indiana Transmission Plant in Kokomo, said he would not comment on the agreement. "Chrysler will make announcements about its products," he said. "As far as I know, Chrysler hasn't made any announcement." The memorandum of understanding between DaimlerChrysler and the UAW obtained by the Tribune says companies would invest $560 million (€441 million) in a new plant, preferably near Indiana Transmission Plants I and II, along U.S. 31 on the city's north side. That spending would include tooling, machining and equipment, with the plant opening in 2009. Chrysler owns about 280 acres (112 hectares) of land near the Indiana Transmission Plants, which have about 2,600 workers and have opened since 1998. About 4,200 people work at the company's Kokomo transmission and casting plants in the city some 40 miles north of Indianapolis. The memorandum says that Chrysler "is moving forward with Getrag to procure land, apply for permits, and finalizing government incentives." Jason Hester, the city's development director, said the project would be welcome news. "It would mean new tax revenues and jobs for the community," he said. "Anytime there is a new investment being made in community, it makes us happy."