FCA has announced that it will repurpose an idle transmission plant based in Kokomo, Indiana, investing US$400m to convert the facility to build the company’s GMET4 engine.
The current facility called Indiana Transmission Plant II will be renamed Kokomo Engine Plant and will retain around 1,000 jobs, while adding a further 200. This brings the FCA’s employment total in the state of Indiana to more than 8,300.
FCA’s new facility will be the main source of all US-based GMET4 powertrain production, with the engine currently being built in Termoli, Italy. Investment plans have been supported by the city of Kokomo and the UAW. Production is expected to start in the second quarter of 2021.
Mark Stewart, the chief operating officer for FCA North America, commented, “The GMET4 will be a very important engine for us as we look to deliver on the promises we made as part of our five-year plan in 2018.
“While the 2.0-liter is a current engine option on the Jeep Wrangler and Cherokee models, a significant number of new technologies can be applied to this engine, making it relevant for the future. It will play an important role in our plans to offer electric engine options across 30 nameplates that FCA will bring to markets around the world by 2022.”
Over the past eight decades, the FCA has built more than 90 million transmissions in Indiana, and when GMET4 production begins, it will be the first time ever that the company has built engines in the state.
Stewart added, “This engine program will bring new job opportunities for our current workforce, as well as the manufacturing workforce of the future.”
