Fiat-Chrysler to invest $400M in new Kokomo engine plant

In this May 6, 2014, file photo, a vehicle moves past a sign outside Fiat Chrysler Automobiles world headquarters in Auburn Hills, Mich. (AP Photo/Carlos Osorio, File)

INDIANAPOLIS (WTHR) - The auto industry in Kokomo is getting a big boost, Governor Eric Holcomb announced during his State of the State address Tuesday.

Holcomb said Fiat-Chrysler plans to spend nearly $400 million on its facilities in Kokomo. The money would be put toward expanding and equipping a factory for production of a new engine, according to a release from the Indiana Economic Development Corporation.

“Fiat Chrysler’s intentions to expand its presence in Indiana, creating more quality careers for Hoosiers in the process, is a testament to Indiana’s pro-growth business environment and talent pipeline, and I couldn’t be more grateful," the governor said.

The company plans to build the GMET4 engine at the new plant, the first time Fiat-Chrysler has built an engine in Indiana. More than 1,000 workers will be needed to staff the facility. Those positions would be filled by the end of 2021 with existing workers and new hires.

The release from the IEDC did not mention how many new jobs may be available.

“I am looking forward to working with FCA as we finalize this plan for this investment in our community," Kokomo Mayor Tyler Moore said in the IEDC release. "Kokomo has always been a leader in making the best automotive products in the world. I appreciate FCA’s commitment to Kokomo as an employer and a community partner.”

Construction at the plant is scheduled to start later this year.