From the Kokomo Tribune:
With pending tax abatement requests in Kokomo and Tipton County this week, auto industry experts predict it will mean more jobs in Chrysler plants locally.
The Kokomo Common Council will consider a request for a 10-year tax abatement and the Tipton County Commissioners will consider a similar request from Chrysler Group LLC today.
Company officials have confirmed they have requested 10-year tax abatements, but have not released additional inform about its plans expected to be centered on the production of 8- and 9-speed transmissions.
The expected announcements in Tipton and Kokomo are a sign of a company that is healthy and growing, Bruce Belzowski, assistant research scientist at the Automotive Analysis Division of the University of Michigan, said.
“It’s growing and moving move toward where it was before the bankruptcy,” he said. “It means more jobs.”
Belzowski said companies expect a demand for the 8- and 9-speed transmissions as a way to meet the federally-mandated fleet fuel economy standards of 34.1 miles per gallon in 2016.
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David Cole, chairman emeritus of the Michigan based Center for Automotive Research, said the bigger picture involves auto companies moving from the traditional 4-, 5- and 6-speed transmissions to 7-, 8- and 9-speed transmissions to obtain more fuel efficiency.
“A transmission is as expensive as an engine,” Cole said. “It requires a lot of retooling and restructuring of the business.”
Cole said Chrysler’s major transmission operations are in Kokomo and the request for a tax abatement is not a surprise.
“There really is a demand for 8- and 9-speed transmissions,” he said. “That demand is expected to increase.”
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http://kokomotribune.com/local/x1951926676/Chrysler-abatements-mean-more-area-jobs
