Like its competitors, Chrysler will adopt new, fuel-saving 8-speeds gearbox technology.
Chrysler Group LLC has announced plans to buy 8-speed transmissions from Germany’s ZF.
The automaker will initially import the gearboxes from Europe then begin production of its own at an updated plant in Indiana, saving, the maker says, more than 1,000 U.S. jobs.
The deal will give Chrysler, which is trying to rebuild its technology portfolio, access to an important enhancement to future products. The 8-speed transmission improves the fuel economy for vehicles equipped with gasoline engines while also giving the company bragging rights in a technology recently dominated by its European and Asian rivals.
“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,” says Hans-Georg Härter, ZF’s President and CEO.
Chrysler Group LLC will receive the 8HP 8-speed automatic transmissions from the ZF Getriebe GmbH plant in Saarbrücken, Germany.
But the maker has licensed manufacturing rights and plans to begin producing the transmission on its own at an existing gearbox plant in Kokomo, Indiana. Updating that facility will cost $300 million, which Chrysler notes is its largest new investment program since emerging from Chapter 11 protection in spring 2009. Overall, the maker noted, it has committed $1.3 billion to upgrade its powertrains since 2007 – a key element in Chrysler’s plan to boost fuel economy 25% by 2014.
“The American market remains as mobile as ever, so the importance of environmentally friendly, fuel-saving technology has never been more important,” says Dr. Gerhard Wagner, Group Executive of ZF’s Car Driveline Division.