Toledo Machining currently produces steering columns and torque converters, a component that allows the transmission to shift gears in an automatic transmission.
The money will be used to produce new generation front-wheel and rear-wheel drive torque converters and steering columns that are a critical part of Chrysler's strategy to meet fuel economy requirements over the next several years. As part of the investment, 640 hourly and salaried jobs will be retained.
"We welcome this investment in Toledo Machining as it is an acknowledgement of the high quality components that have been produced by our skilled workforce for many years," said Scott Garberding, Senior Vice President and Head of Manufacturing, Chrysler Group LLC. "Being able to bring new technology to this facility secures its long-term future."
"We are also appreciative of the support we have received from the State of Ohio in providing the incentives necessary to make this investment possible," said Garberding.
The investment would fund the installation of new equipment and special tooling to modernize and enhance the plant's capability. Work on the plant is expected to begin late third quarter 2011 and be completed in the first quarter of 2013.
"We're very pleased that Chrysler is making the decision to invest in the Toledo Machining Plant and the skilled workforce there," said General Holiefield, Vice President and Director, UAW Chrysler Department. "This will help preserve and enhance jobs in the area and give a greater measure of security to our members and their families well into the future."
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