AUBURN HILLS, Mich. -

Triggered by a strategy change for transmission manufacturing, Chrysler confirmed Tuesday that it’s looking to pour another $85 million into its facilities in Kokomo, Ind. The company plans to modify the Kokomo Transmission Plant (KTP) for a variety of powertrain improvements.

Chrysler explained that it notified city officials of the potential new investment during Monday’s Kokomo City Council meeting. At the same time, the OEM requested the transfer of the previously approved tax abatement certificate on the announced $300 million investment from Indiana Transmission Plant I (ITPI) to KTP to facilitate the production of the next generation eight-speed transmission.

“We’re moving eight-speed production to KTP because we’re pulling production ahead and the timing worked better at KTP,” explained Brian Harlow, vice president and head of powertrain manufacturing at Chrysler

“This move opens up space at ITPI to prepare the plant for production of the front-wheel drive transmission, which we announced in November,” Harlow added.

At Monday’s meeting, Chrysler also mentioned the Kokomo City Council approved the automaker’s tax abatement application on the $843 million investment for production of the front-wheel drive transmission.

“We are grateful to Mayor Goodnight and the Kokomo City Council for their continued support of Chrysler Group,” Harlow declared.

“These investments demonstrate our commitment to this community and our work force,” he went on to say. “We look forward to continuing a partnership that will secure Kokomo’s position as the center of our powertrain strategy.”

Coupled with the $1.2 billion investment plans the automaker already revealed for its Kokomo facilities, this potential investment would push Chrysler’s commitment in U.S. sites to more than $3 billion since June 2009.

Previous Kokomo Investment Announcements

Back on Nov. 23 and the same day President Obama visited Chrysler’s Indiana Transmission Plant II, the company announced it would invest nearly $843 million to accommodate production of a new advanced front-wheel drive automatic transmission for future Chrysler vehicles and to help retain nearly 2,250 jobs.

In May and June, respectively, the automaker also shared it planned to invest $43 million and then another $300 million in its Kokomo facilities.

The $43-million investment is intended to increase capacity at the company’s Kokomo Casting and Kokomo Transmission plants, adapt them to support production of the World Engine and improve processes for the 62TE transmission program. The $300-million investment is geared to prepare KTP for production of a new highly fuel-efficient eight-speed automatic transmission for future Chrysler vehicles.

When all investments are combined, the OEM insisted that the city of Kokomo will be the recipient of the largest investment in a single year in a single community — totaling nearly $1.3 billion.

In addition to investments in Kokomo, Chrysler recapped its list of achievements since June of last year, including;

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

—Reporting the eighth consecutive month of year-over-year sales increases in November..

—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 Chrysler 200, Dodge Avenger and Dodge Durango this month.

—Launching the all-new 2011 Jeep Grand Cherokee back 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.

Review of Plants and Products

Chrysler reiterated that the ITPI 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.

The automaker noted the Indiana Transmission Plant II produces the W5A580 5-speed transmission for the Chrysler 300, Jeep Grand Cherokee, Dodge Durango, Dodge Nitro and Dodge Charger.

Meanwhile, the company pointed out that KTP makes the 62TE front-wheel drive transmission for the Chrysler Town & Country, Dodge Avenger and Dodge Grand Caravan; 42RLE rear-wheel drive transmission for the Chrysler 300, Dodge Dakota, Dodge Charger, Dodge Nitro, Ram Trucks, Jeep Liberty and Jeep Wrangler; and the 40TE/41TE-40TES/41TES front-wheel drive transmission for the Chrysler 200, Chrysler Town & Country, Dodge Avenger and Dodge Grand Caravan.

Finally, officials mentioned the Kokomo Casting Plant manufactures aluminum parts for automotive components, transmission and transaxle cases.