Chrysler Group LLC to Invest $300 Million to Modernize Indiana Plants for New Fuel-Efficient Eight-Speed Automatic Transmission

AUBURN HILLS, Mich., June 9 /PRNewswire/ –

– Chrysler Group’s Indiana Transmission Plant I and Kokomo Casting will be
retooled and modernized
– Investment is the largest in the U.S. since the new Company was formed
in June 2009
– Chrysler Group reaches agreement with ZF to produce new eight-speed
automatic transmission
– All-new eight-speed automatic transmission will contribute to company’s
overall fleet fuel-efficiency improvement of more than 25 percent by
2014
– Plant investment will help retain nearly 1,200 jobs
– Brings total powertrain investment to nearly $1.3 billion since 2007

Chrysler Group LLC will invest $300 million into the Company’s existing
transmission manufacturing facilities in Kokomo, Ind., to accommodate a new
highly fuel-efficient eight-speed automatic transmission for future Chrysler
Group vehicles.

The largest investment in the U.S. since the new Company was formed in June 2009
was aided by the approval of a tax abatement from the city of Kokomo. The
investment will fund the installation of equipment and special tooling to
modernize Indiana Transmission Plant I and the Kokomo Casting Plant. The project
will extend the life of both manufacturing facilities and help retain nearly
1,200 jobs.

Chrysler Group has licensed the manufacturing rights from Friedrichshafen,
Germany-based ZF Group to build the new eight-speed beginning in 2013. Included
in this agreement is the purchase of transmissions manufactured by ZF.

“The new eight-speed transmission that we’ll be producing in Kokomo will
transform our future product line, but equally important, ensures the future
viability of our Kokomo facilities and our dedicated workforce,” said Scott
Garberding, Senior Vice President and Head of Manufacturing, Chrysler Group LLC.
“The support demonstrated by General Holiefield, Vice President and Director of
the UAW Chrysler Department, and the entire UAW for World Class Manufacturing is
one of the primary reasons we continue to make significant investments in our
Indiana facilities.”

“In addition, the State of Indiana and Governor Mitch Daniels, the City of
Kokomo and Mayor Greg Goodnight as well as Congressman Joe Donnelly, Congressman
Dan Burton and the rest of the Indiana Congressional delegation have been valued
partners as Chrysler Group works to bring the most technologically advanced and
fuel efficient vehicles to market. This investment would not be possible without
their continued support,” said Garberding.

“It’s heartening to see the local unions and employees in Indiana embrace the
principles of WCM and, as a result, see the company continue to make significant
investments in both new technology and the Kokomo facilities,” said General
Holiefield, Vice President and Director of the UAW Chrysler Department. “This
action will give Chrysler a head-start on a new transmission and will help
secure the future for Chrysler UAW-represented employees.”

The new transmission will contribute to an overall fuel economy improvement
across the Chrysler, Dodge, Jeep