Governor Eric J. Holcomb and Secretary of Commerce Brad Chambers today joined local officials and executives from Stellantis (NYSE: STLA), formerly Fiat Chrysler Automobiles, and UAW leaders to announce the company’s plans to invest $229 million
in its Kokomo operations to support its goal of achieving 40% low-emission vehicle sales in the U.S. by 2030. Today’s news comes three months after the company rolled out its long-term electrification strategy, which includes a commitment to
invest €30billion ($35 billion) globally through 2025 in electrification and software.
"It's an incredibly exciting day for the state of Indiana as we celebrate Stellantis’ major investment in its Kokomo operations,” said Gov. Holcomb. “Not only is Stellantis investing in the future of the auto industry,
but the company is also in skilling up hundreds of Hoosiers to meet the demands of an evolving workforce. It’s because of businesses like Stellantis, action taken by industry leaders and the General Assembly to advance electrification strategies,
Indiana is positioned to be a leader in the future of mobility.”
Stellantis’ investment will support the retooling of the Kokomo Transmission, Kokomo Casting, and the Indiana Transmission plants to produce electrified, next-generation, eight-speed transmissions, which will have the flexibility to be paired
with internal combustion engines as well as mild hybrid and plug-in hybrid propulsion systems for a number of Stellantis vehicles. The electrified transmission will also deliver improved fuel economy, provide pure-electric range and help vehicles
meet future emission regulations.
Based on the company’s plans to invest $225.6 million in its Indiana operations, the Indiana Economic Development Corporation (IEDC) committed an investment in Stellantis of up to $19.25 million in the form of conditional tax credits from the
Hoosier Business Investment (HBI) tax credit program. The IEDC will also offer up to $300,000 in training grants. These tax credits are performance-based, meaning the company is eligible to claim credits once investments are made and employees
are trained. The city of Kokomo will consider additional incentives.
