Chrysler to Build 9-Speed ZF Transmissions in Indiana

Chrysler Group LLC confirms it will begin building 9-speed ZF-licensed transmissions a year from now at two plants in Indiana.

The company is spending $212 million to upgrade casting and gearbox operations at its big production complex in Kokomo to build 8-speed transmissions as well as the new 9-speed unit.

Chrysler will invest another $162 million to prepare an unfinished factory in Tipton, 10 miles away, to build the 9-speed transmission. The facility was originally intended to make dual-clutch transmissions under a joint venture with German transmission maker Getrag AG. That partnership collapsed in 2008.

Chrysler also will buy the same 9-speed gearbox design directly from ZF. Developed for transverse-mounted front-drive engines, the new transmission is more compact and about 16% more fuel efficient than a 6-speed automatic.

The ZF design comes in two sizes to cover a wide range of engine output, both of which can accommodate all-wheel-drive powertrains. Chrysler will build both versions in Indiana. The company said last month it expects to use the new gearbox in as many as 200,000 vehicles this year, beginning with the Jeep Liberty SUV.

Earlier this week Tata Motors Ltd.'s Land Rover unit announced it also will switch to the 9-speed ZF transmission. Land Rover will unveil the gearbox in a Range Rover Evoque SUV at the Geneva auto show next week.

Land Rover claims it will be the first vehicle maker to put the ZF gearbox into production.