With four transmission plants in Kokomo, local union officials are hoping Chrysler Group LLC sees the City of Firsts as the perfect location for the company to build its new dual-clutch transmission.
However, when Chrysler’s CEO Sergio Marchionne and his executives explained the company’s five-year turnaround plan Wednesday, no site was mentioned for transmission production.
During the announcement, officials only said the company intends to maximize the use of common parts for Fiat and Chrysler vehicles, which would save the company money.
“You would hope it came here. That would be great,” said Shawn Fain, of United Auto Workers Local 1166 and a member of the UAW/ Chrysler National Negotiation Committee.
“I want them to keep jobs in America so we can stabilize the economy and get money into people’s pockets. That’s the issue with me. It would be great if it was coming here, but they haven’t said anything yet.”
Bill Visnic, senior editor of Edmunds.com, said Chrysler once had plans to build the transmission with Getrag at the facility to be built along U.S. 31 in Tipton. But that plan crumbled with Getrag’s bankruptcy, and Visnic isn’t sure where in America the transmission will be built.
“I think [Kokomo] would have a leg up on it being built in a U.S. plant,” said Visnic. “They haven’t given enough details about where the transmission will be built, but since it is going to mostly 4-cylinder models — which is a bulk of their mid-size cars — they are going to need more transmissions.
“The wild card in this is sourcing. Right now Fiat has an incentive to make products in America. They can increase ownership in Chrysler. It’s foggy right now, but I would think they would want to assemble their products in America. The five-year plan didn’t really include sourcing. We will probably hear more about it in a couple of years. But right now, time is on their side.”
Chrysler records indicate the company is the No. 2 seller in Mexico. Ford Motor Co. is No. 1.
As a result, some industry analysts have suggested Chrysler may build the fuel-efficient Fiat 500 in Mexico. But one automotive analyst is sure the transmission will not be built there, and it probably won’t be outsourced overseas either.
“Anything they are thinking about shipping from Europe will be very expensive, and because of that, I believe it will be built here,” said David Cole, chairman of the Ann Arbor, Mich.-based Center for Automotive Research.
“They haven’t suggested what plants would be used, but since they will be building a lot of platforms and they would be used heavily, I believe they will be manufactured in North America.”
Local News
No site suggested for production of new dual-clutch transmission
Industry analysts believe products will be built in U.S.
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