Stellantis Announces $229 Million Investment in Kokomo, Indiana, Operations to Accelerate Electrification Plans

Rhea-AI Summary

Stellantis has announced a $229 million investment in its Kokomo, Indiana, plants to enhance its electrification strategy. This initiative will retain 662 jobs and retool three plants to produce next-generation, eight-speed transmissions. These transmissions are designed to improve fuel economy and enable vehicles to meet future emissions standards. The investment is part of Stellantis' commitment to achieving 40% low-emission vehicle sales in the U.S. by 2030 and follows a larger $35 billion investment into electrification through 2025.

Positive

• Investment of $229 million to support electrification and retain 662 jobs.
• New transmissions will improve fuel economy and comply with future emissions regulations.
• Strategic move towards achieving 40% low-emission vehicle sales in the U.S. by 2030.

Negative

• None.

KOKOMO, Ind., Oct. 7, 2021 /PRNewswire/ --

• Announcement is one piece of a long-term strategy and electrification plan shared during the company's EV Day
• Investment will retool three Kokomo plants to produce electrified, next-generation, eight-speed transmissions; 662 jobs retained
• "Multi-tool" of transmissions can be paired with internal combustion, mild hybrid or plug-in hybrid propulsion systems
• New transmission will deliver improved fuel economy, provide pure-electric range and help vehicles meet future emission regulations
• Electrified transmission diversifies product portfolio of Kokomo-area plants
• Leverages core competencies and skill sets of local workforce

Stellantis today announced it would invest a total of $229 million in three of its Kokomo, Indiana, plants to help the company reach its goal of achieving 40% low-emission vehicle sales in the U.S. by 2030. This announcement, which will retain 662 jobs, comes three months after the company laid out its long-term electrification strategy, where it committed to investing $35 billion through 2025 in electrification and software.

Stellantis Head of Powertrain Operations Brad Clark made the announcement during an event at the Kokomo Transmission Plant attended by Indiana Governor Eric J. Holcomb, Kokomo Mayor Tyler Moore and UAW Region 2B Director Wayne Blanchard, along with other elected officials and community leaders.

The investment will support retooling of the Kokomo Transmission (KTP), Kokomo Casting and Indiana Transmission plants to produce the fourth-generation eight-speed transmission. This new transmission will have the flexibility to be paired with internal combustion engines, as well as mild hybrid and plug-in hybrid propulsion systems, for vehicles across the Jeep®, Ram, Chrysler and Dodge brands. It will 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 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."

The new, fourth-generation, eight-speed transmission will capitalize on a number of common parts within the different versions – transmission gear train/clutch, mechatronics, mechanical pump and E-pump motor. It also will have the flexibility for unique parts to adapt to the various electrification options. These parts include the eMotor, torque converter and power electronics. 

Adding electrified transmission assembly also diversifies the product portfolio of the Kokomo operations. In March 2020, Stellantis announced it would invest $400 million to convert Indiana Transmission Plant II to the Kokomo Engine Plant to produce the GMET4 engine, the company's 2.0-liter Global Medium Engine inline four-cylinder turbo. Production is expected to launch later this year.

This investment also leverages the core manufacturing competencies of the Kokomo operations and the local workforce in the areas of casting, machining and assembly, all of which will be needed as the market transitions to an electrified future.

"As our industry continues to change, our focus must continue to be on our most valuable asset – our people," said Clark. "This transmission program will bring new opportunities for our current workforce, as well as the manufacturing workforce of the future."

The second-generation eight-speed transmission has been a workhorse of the company's powertrains since production began in 2012. KTP celebrated the 5 millionth eight-speed transmission built on Sept. 30. It is the current transmission option on the Jeep Wrangler, Gladiator and Grand Cherokee; Wagoneer/Grand Wagoneer; Ram 1500; Dodge Charger, Challenger, Durango; and Chrysler 300 models.

Stellantis
Stellantis (NYSE: STLA) is one of the world's leading automakers and a mobility provider, guided by a clear vision to offer freedom of movement with distinctive, affordable and reliable mobility solutions. In addition to the Group's rich heritage and broad geographic presence, its greatest strengths lie in its sustainable performance, depth of experience and the wide-ranging talents of employees working around the globe. Stellantis will leverage its broad and iconic brand portfolio, which was founded by visionaries who infused the brands with passion and a competitive spirit that speaks to employees and customers alike. Stellantis aspires to become the greatest, not the biggest, while creating added value for all stakeholders, as well as the communities in which it operates. 

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SOURCE Stellantis

FAQ

What is Stellantis' recent investment in Kokomo, Indiana?

Stellantis announced a $229 million investment to retool three plants in Kokomo, Indiana, to produce next-generation, eight-speed transmissions.

How many jobs will be retained with the Stellantis investment?

The investment will retain 662 jobs at the Kokomo plants.

What is the goal for low-emission vehicle sales set by Stellantis?

Stellantis aims for 40% low-emission vehicle sales in the U.S. by 2030.

What is the purpose of the new eight-speed transmission?

The new eight-speed transmission will improve fuel economy, provide pure-electric range, and help vehicles meet future emission regulations.

How much is Stellantis investing in electrification through 2025?

Stellantis is committing to a total of $35 billion investment in electrification and software through 2025.