KOKOMO, Ind. -

How big was Chrysler’s investment announcement on Tuesday? President Obama and Vice President Biden came to the automaker’s Indiana Transmission Plant II to be a part of the festivities.

Included in a string of investment decisions totaling nearly $3 billion, Chrysler confirmed that it is looking to invest $843 million in its Indiana Transmission Plants and Kokomo Casting Plant to accommodate the production of a new advanced front-wheel drive automatic transmission for future vehicles. The company indicated the investment will fund the installation of equipment and special tooling to modernize its Indiana Transmission Plants and the Kokomo Casting Plant.

Officials believe the project willextend the life of both manufacturing facilities and help retain nearly 2,250 jobs. With this announcement, the company calculated its total investment in U.S. facilities has climbed to nearly $3 billion since June 2009.

When combined with previously announced investments totaling $343 million in its Kokomo facilities, OEM officials stressed this new funding support will make the city the recipient of the largest investment — $1.1 billion — in a single year in a single community, pending the Kokomo City Council’s approval of Chrysler’s tax abatement application on Dec. 13.

Chrysler explained it will be partnering with Friedrichshafen, a Germany-based ZF Group, on the next generation front-wheel drive transmission.

The Indiana Transmission Plant currently produces the 45 RFE rear-wheel drive transmission for Jeep Grand Cherokee, Jeep Liberty, Dodge Dakota and Ram Trucks and 68 RFE for Cummins Diesel, Heavy Duty. Indiana Transmission Plant II produces the W5A580 5-speed transmission for the Chrysler 300, Jeep Grand Cherokee, Dodge Nitro and Dodge Charger. The Kokomo Casting Plant manufactures aluminum parts for automotive components, transmission and transaxle cases.

“For years, Kokomo has been at the center of our powertrain strategy and the potential of an additional investment reaffirms that position,” stated Chrysler chief executive officer Sergio Marchionne.

“When introduced, this new front-wheel drive transmission, along with the previously announced eight-speed transmission we will also produce in Kokomo, will transform our future products and position them as leaders in marketplace,” Marchionne continued.

“With the promise of investing more than $1 billion into our Kokomo facilities within the last six months, we are demonstrating our commitment to this community and our dedicated workforce,” he went on to say. “We appreciate the support of the UAW and the City of Kokomo, and look forward to continuing a partnership that will see the Chrysler Group once again become a successful and competitive enterprise.”

The decisions were well-received by the UAW leadership, especially General Holiefield, vice president and director of the UAW Chrysler department.

“This investment announcement is more good news for our Indiana employees,” Holiefield noted.

“This action will give Chrysler a head start on a new front-wheel drive transmission and will help secure the future for Chrysler UAW-represented employees,” he added.

Obama and Biden Tour Plant

Escorted by plant manager Jeremy Keating and UAW Local 986 president Richie Boruff, President Obama and Vice President Biden toured the plant where the W5A580 5-speed transmission for the Chrysler 300, Jeep Grand Cherokee, Dodge Nitro and Dodge Charger are produced.

Chrysler mentioned the group stopped at the final assembly line where the clutch and supporting components are manually assembled to the transmission. Officials said the president and vice president talked with employees about the changes that have been implemented to improve the efficiency of the line as a result of World Class Manufacturing, an extensive and thorough process to restore all Chrysler facilities to their original and maximum functionality.

In a speech to a group of more than 150 employees and invited guests, Obama highlighted two ITPII employees whose futures were changed as a result of the company’s recent investments and the support of the administration.

Sharron Ybarra, 56, was hired in September. Chrysler noted Ybarra previously worked for 20 years at the local papermill, which shut down, leaving her out of work for five years. The automaker mentioned Ybarra later found work at a communications company paying $9 per hour.

The OEM went on to showcase James Faurote, who has been a Chrysler employee since 1998 when he was hired at the New Castle, Ind., Machining Plant. In January 2004, the automaker said Faurote was laid off due to the plant closing and relocated to Kokomo where he was laid off again and back to work multiple times over the past five years.

It wasn’t until after the bankruptcy that Faurote has been back to work at Chrysler for more than a year, according to the company.

“We’ve got some of the best workers in the United States of America right here at this plant,” Obama said to the gathering. “And I had a chance to meet some of you as we were going around seeing these amazing transmissions that you’re building. And I was very happy to hear that after a couple of tough years, this plant is now running at full capacity.

“This is a reminder of what we do as Americans,” the president went on to say. “What we can do as Americans when we come together, when we’re not divided; we’re not spending all our time bickering, but instead focusing on getting the job done. We don’t give up. We don’t turn back. We fight for our future.”

Chrysler Emphasizes Progress

In addition to the investments confirmed on Tuesday, Chrysler contends it has made significant progress toward building a successful enterprise since June 2009, including:

—Reporting an operating profit of $565 million year-to-date 2010.

—Reporting seven consecutive months of year-over-year sales gains.

—Announcing a $600 million investment in its Belvidere, Ill., Assembly plant;

—Announcing an investment of $1 billion in its Sterling Heights, Mich., Assembly plant and surrounding stamping facilities as well as its GEMA, Dundee, Mich., facility.

—Adding a second shift of production — or nearly 1,100 jobs — at its Jefferson North (Detroit) Assembly Plant.

—Announcing that it would add nearly 900 jobs on a second shift at its Sterling Heights, Mich., Assembly Plant in the first quarter of 2011.

—Launching the all-new 2011 Jeep Grand Cherokee in May.

—Announcing that it will invest $179 million to launch production of the 1.4-liter, 16-valve Fully Integrated Robotized Engine (FIRE) at the company’s Global Engine Manufacturing Alliance (GEMA) plant in Dundee, Mich., creating more than 150 new Chrysler jobs.