Stellantis To Invest $229 Million To Retool Operations For Electric Vehicles

Formerly Fiat Chrysler Automobiles, Stellantis will retain, retrain 662 team members to support production of electrified transmissions in Kokomo, IN.


https://businessfacilities.com/2021/10/stellantis-to-invest-229m-to-retool-ev-production-operations/
Formerly Fiat Chrysler Automobiles, Stellantis will retain, retrain 662 team members to support production of electrified transmissions in Kokomo, IN.
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Stellantis To Invest $229M To Retool EV Production Operations

Stellantis will retain, retrain 662 team members to support production of electrified transmissions, drive industry of the future.

Stellantis To Invest $229 Million To Retool Operations For Electric Vehicles

Stellantis, formerly Fiat Chrysler Automobiles, will invest $229 million in its Kokomo, IN, operations to support its goal of achieving 40% low-emission vehicle sales in the U.S. by 2030. This news comes three months after the company rolled out its long-term electrification strategy, which includes a commitment to invest $35 billion globally through 2025 in electrification and software.

“This investment and this transmission represent an important stepping stone in getting us to 2030 and further expanding our battery electric offerings,” said Brad Clark, Head of Powertrain Operations for Stellantis. “As our industry continues to change, our focus must continue to be on our most valuable asset – our people. This transmission program will bring new opportunities for our current workforce, as well as the manufacturing workforce of the future.”

Stellantis
Photo: Stellantis

Stellantis’ investment will support the retooling of the Kokomo Transmission, Kokomo Casting, and the Indiana Transmission plants to produce electrified, next-generation, eight-speed transmissions. These transmissions will have the flexibility to be paired with internal combustion engines, as well as mild hybrid and plug-in hybrid propulsion systems for a number of Stellantis vehicles. The electrified transmission will also deliver improved fuel economy, provide pure-electric range and help vehicles meet future emission regulations.

“It’s an incredibly exciting day for the state of Indiana as we celebrate Stellantis’ major investment in its Kokomo operations,” said Governor Eric Holcomb. “Not only is Stellantis investing in the future of the auto industry, but the company is also skilling up hundreds of Hoosiers to meet the demands of an evolving workforce.”

“Because of businesses like Stellantis, and action taken by industry leaders and the General Assembly to advance electrification strategies, Indiana is positioned to be a leader in the future of mobility,” Holcomb added.

Stellantis employs nearly 88,000 people in North America, including more than 7,300 throughout its Indiana operations. A portion of the company’s investment will go toward retaining, retraining and transitioning 662 Kokomo employees into hybrid transmission manufacturing roles, which would be met with increased wages, subject to the 2019 United Auto Workers Collective Bargaining Agreement.

“I appreciate the confidence that Stellantis continues to show in the skills and abilities of our dedicated local workforce,” said Kokomo Mayor Tyler Moore. “As the automotive industry makes this shift towards alternatives like electric vehicles, our workers in Kokomo are well-prepared to take up the challenge to adapt, re-focus and excel in new technologies.”

Based on the company’s plans to invest $225.6 million in its Indiana operations, the Indiana Economic Development Corporation (IEDC) committed an investment in Stellantis of up to $19.25 million in the form of conditional tax credits from the Hoosier Business Investment (HBI) tax credit program. The IEDC will also offer up to $300,000 in training grants. These tax credits are performance-based, meaning the company is eligible to claim credits once investments are made and employees are trained. The city of Kokomo will consider additional incentives.

Stellantis’ announcement comes a year and a half after the company announced plans to diversify its Kokomo manufacturing operations with a $400 million investment to expand and retool its Indiana Transmission Plant II for production of its new GMET4 engine.

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