Chrysler Group has revealed the plans to invest $162m to reconstruct the Getrag Transmission plant at Tipton in Indiana, US to manufacture transmissions.
The company plans to buy back the plant from the W.W. Reynolds which has put it on sale for about $39.5m, install new machinery and open the plant by 2014.
Chrysler spokeswoman Jodi Tinson said that there's demand for the company's product.
"And you can't drive cars without transmissions," Tinson added.
The company was approved a property tax deduction of about $2.5m for the transmission plant which is to offer job for about 850 people.
The Getrag Transmission factory covers 800,000ft2 of area and was discarded by the Chrysler Group due to the company's bankruptcy four years ago.
Earlier in 2012, the group had announced plans to spend $200m in Detroit engine plant and increase the workers at two plants in Michigan and one in Illinois.
