FCA Invests $400M to Transform Indiana Plant

Fiat Chrysler Automobiles (FCA) recently announced that it will invest $400 million to repurpose an idled transmission plant in Kokomo, Indiana, to build the GMET4 engine, which is currently offered on the Jeep Wrangler and Cherokee. With the investment, 1,000 jobs will be retained and nearly 200 new jobs added to support production.

The new facility will be the source of all U.S. production for the engine currently built in Termoli, Italy. Production is expected to begin in the second quarter of 2021.

“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,” said Mark Stewart, chief operating officer at FCA North America. “This engine program will bring new job opportunities for our current workforce, as well as the manufacturing workforce of the future.”

FCA has built transmissions in Indiana for more than eight decades. When production of the GMET4 launches, it will mark the first time in the company’s history that it has built engines in the state.

Construction of the Indiana Transmission Plant II (ITPII), which will be renamed Kokomo Engine Plant, began in 2002 and launched production of five-speed transmissions in November 2003. The plant also produced components for eight-speed transmissions. ITPII built its last five-speed transmission in August 2018 and was idled in the fall of 2019.

For more information, visit www.fcagroup.com.