North American automaker FCA US has announced plans to invest additional $266m in its Kokomo Transmission Plant in Indiana to increase capacity of the fuel-efficient TorqueFlite transmission.
This decision follows the increased sales of vehicles equipped with the eight-speed transmission and it marks the sixth investment made at the plant since June 2009.
With this addition, the total investment in this plant will reach to nearly $1.8bn, the company said.
This development will bring new equipment and tooling, adding more assembly capacity within KTP's existing floor space.
FCA North America Powertrain Manufacturing Operations head Brad Clark said: "We are pleased that vehicles equipped with this transmission have been so well received by consumers. This investment will give us the additional capacity we need to make it available across even more vehicles in our product line."
Meanwhile, the company has requested city officials to amend an existing tax abatement to support this new investment.
The works in the plant will start after the Council's approval and it is expected to be completed in the third quarter 2016.
