Chrysler Group is investing $266 million in new manufacturing equipment at two of its facilities in Kokomo.
The move will enable the company to expand production of its eight-speed transmission vehicles. Chrysler has sold more than 1 million vehicles made with the Kokomo-built transmission.
The Kokomo Common Council approved a 10-year tax abatement Monday night for personal property taxes for the project. The automaker has invested more than $1.5 billion in its five Kokomo-area facilities since its 2009 bankruptcy.
The Columbus Republic reports Chrysler has not announced any additional hiring, but the company says the investment will help retain jobs. The company employs more than 7,000 people at the Kokomo facilities.
Kokomo Mayor Greg Goodnight says Chrysler's investment is a sign of Kokomo's economic growth.
"Kokomo is thriving," Goodnight said in a statement. "Our city's economic development strategy and quality-of-life initiatives for all of Kokomo are intended to facilitate this type of private investment."