Fiat Chrysler investing additional $266M in Kokomo to increase capacity for 8-speed transmissions

23 December 2014

Eight-speed transmission housings move down the assembly line at Kokomo Transmission Plant. Click to enlarge.

With sales of vehicles equipped with the popular eight-speed transmission growing, FCA US LLC (the new name for Chrysler Group LLC) will invest an additional $266 million in its Kokomo Transmission Plant (Ind.) to increase capacity of the fuel-efficient TorqueFlite transmission. This is the sixth investment made at Kokomo Transmission (KTP) since June 2009, bringing total investment in FCA US Kokomo operations to nearly $1.8 billion.

KTP has been producing the eight-speed transmission, introduced and licensed through ZF (earlier post), since September 2012. In 2013, KTP produced nearly 300,000 eight-speeds. That number has more than doubled to nearly 700,000 in the first 11 months of 2014. Currently, the eight-speed transmission is available on the Jeep Grand Cherokee, Chrysler 300, Dodge Challenger, Dodge Charger, Dodge Durango and Ram 1500. The Company sold more than 800,000 of these models in the US through November 2014.

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Internally, the 8-speed transmission features four gear sets and five shift elements (multi-disc clutches and brakes) inside the transmission. With fewer open shift elements, drag losses due to multiple parts rotating relative to one another, are reduced.

Additionally, lower viscosity transmission fluid is used resulting in improved transmission efficiency and fuel economy improvements especially during cold environments or vehicle start-up. The transmission also is “fill for life” not requiring oil changes during normal driving conditions.

The KTP-produced advanced-technology TorqueFlite eight-speed automatics—first of their kind made available to mainstream-brand customers—are projected to power more than one million vehicles worldwide.

Over their lifetimes, these vehicles are projected to save their owners more than 700 million gallons of fuel, compared with their predecessors that featured five- or six-speed automatics. That quantity of gasoline is worth approximately $2.5 billion at the pump, based on current fuel-price forecasts.

In comparison to the fleet of conventional transmissions they replaced, TorqueFlites promise to reduce carbon dioxide emissions by more than six million metric tonnes over the same timeframe.

FCA US notified city officials of the new investment at the 8 December 2014 Kokomo Common Council meeting, asking the Council to amend an existing tax abatement to support this new investment. The investment will be used to purchase new equipment and tooling, adding more assembly capacity within KTP’s existing floor space. With the Council’s approval, work in the plant will begin immediately and be completed in the third quarter 2016. With this investment, there will be retention of employment.

Earlier this month, KTP was awarded bronze status for its results in implementing World Class Manufacturing (WCM), a methodology that focuses on reducing waste, increasing productivity, and improving quality and safety in a systematic and organized way. Bronze is awarded after earning a minimum of 50 points in 10 technical and 10 managerial pillars by demonstrating clear WCM know-how and competence through employee-conducted pillar presentations and a review of projects that have been expanded across the shop floor. KTP earned a score of 51.

FCA US has made five additional investments in the Kokomo Transmission Plant since June 2009:

• May 11, 2010 – Announced an investment of $43 million to increase capacity at its Kokomo Casting and Kokomo Transmission plants, and adapt them to support production of the World Engine and improve processes for the 62TE transmission program.

• November 23, 2010 – Announced an investment of nearly $843 million in the Company’s existing transmission manufacturing facilities in Kokomo to accommodate production of a new advanced front-wheel drive automatic transmission.

• December 14, 2010 – Confirmed an investment of $85 million in its Kokomo Transmission Plant for a variety of powertrain improvements.

• December 2010 – A $300 million investment intended for Indiana Transmission Plant I was reallocated to the Kokomo Transmission Plant to accommodate additional production of the eight-speed automatic transmission.

• February 28, 2013 — Announced that it will invest $212 million at Kokomo Transmission, Kokomo Casting and Indiana Transmission I Plants for additional tooling and equipment to produce the eight- and nine-speed transmissions.