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AUBURN HILLS, Mich. — On Wednesday, Chrysler Group officials enthusiastically shared specifics about their largest plant investment since emerging from bankruptcy and partnering with Fiat.

A $300 million investment is under way at the company's existing transmission manufacturing facilities in order to build the automaker's new highly fuel-efficient eight-speed automatic transmission for future Chrysler vehicles.

The funds are being funneled into the company's plant in Kokomo, Ind., as part of the biggest infrastructure enhancement since the new Chrysler emerged last June. The automaker explained it has licensed the manufacturing rights from ZF Group to build the new eight-speed transmission beginning in 2013. Included in this agreement is the purchase of transmissions manufactured by ZF, which is based in Friedrichshafen, Germany.

Executives believe the new transmission will contribute to an overall fuel-economy improvement across the Chrysler, Dodge, Jeep and Ram Truck product lineup. They insist these transmissions are more sophisticated and efficient than traditional five- and six-speed automatic transmissions.

"The new eight-speed automatic transmission will offer our customers refinement and comfort while achieving greater fuel economy and performance," explained Paolo Ferrero, senior vice president of powertrain for Chrysler.

"We look forward to integrating the new transmission into future Chrysler Group products and welcome its contribution to a corporate fuel economy improvement of more than 25 percent by 2014," Ferrero added.

The company noted Chrysler powertrain engineers were tasked with setting functional goals. After working closely with ZF, the automaker thinks the result is a seamless shifting eight-speed transmission without sacrifice.

Chrysler pointed out that specific product information and timing for the new transmission will come at a later date.

ZF management expressed its enthusiasm about working with Chrysler on this venture, especially about bringing its technology from Europe to the United States.

"As the U.S. auto industry continues its rebound, we see considerable growth opportunities within it — especially for next-generation vehicles such as those at Chrysler Group that will use the 8HP 8-speed automatic," said Hans-Georg Harter, ZF's president and chief executive officer.

"America is the birthplace of the automotive automatic transmission, and we feel it is important for ZF to participate in the business here with a dedicated manufacturing facility. We are excited to begin this venture," Harter continued.

Gerhard Wagner, group executive of ZF's car driveline division, reinforced the CEO's assessment.

"The American market remains as mobile as ever, so the importance of environmentally friendly, fuel-saving technology has never been more important," Wagner emphasized.

"ZF is a leader and innovator in fuel-saving transmission technology, and our 8HP 8-speed automatic offers efficiency without sacrifice," he added.

In order to have a manufacturing facility prepared to make these sophisticated transmissions, Chrysler stressed the significant amount of legwork needed.

First off, the automaker noted the $300 million investment was aided by the approval of a tax abatement from the city of Kokomo. Executives pointed out the assistance will fund the installation of equipment and special tooling to modernize Indiana Transmission Plant I and the Kokomo Casting Plant.

All told, the manufacturer maintains the project will extend the life of both manufacturing facilities and help retain nearly 1,200 jobs.

"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 work force," explained Scott Garberding, senior vice president and head of manufacturing for Chrysler.

"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," Garberding continued.

Garberding went on to mention several elected officials who had a hand in making this investment opportunity come to fruition.

"In addition, the state of Indiana and Gov. 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," Garberding stated.

Holiefield offered his perspective about what this Chrysler commitment means to his constituency.

"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," Holiefield expressed.

"This action will give Chrysler a head-start on a new transmission and will help secure the future for Chrysler UAW-represented employees," Holiefield added.

This isn't the first investment Chrysler is making to a site in this Indiana city. Earlier this month, the automaker announced that it would invest $43 million in new equipment and tooling to expand its operations in Kokomo to support production of the World Engine and improve processes for the 62TE transmission program.

Several other Chrysler investments have tallied up some significant amounts.

Back in December 2009, the company revealed it would invest $179 million in its Global Engine Manufacturing Alliance plant in Dundee, Mich. That decision was made in order to produce the 1.4-liter, 16-valve Fully Integrated Robotized Engine.

Rewinding even further to May 2007, Chrysler recalled its $730 million investment in the Pentastar V-6 engine program. This initiative led to production at the all-new Trenton, Mich., Engine Plant this past March.

All together, the automaker summarized its total powertrain investment comes in at nearly $1.3 billion since 2007.