Chrysler seeks tax breaks in Kokomo, Tipton

KOKOMO, Ind. (AP) - Chrysler Group LLC confirmed Friday that it is seeking tax incentives for its transmission plant in Kokomo at the same time it's asking Tipton County officials for similar incentives on a nearby plant that was never completed.

Chrysler spokeswoman Jodi Tinson said the automaker has asked the city to approve tax abatement, but she wouldn't discuss any details.

The Kokomo request comes a week after a similar request for tax abatement on a plant near Tipton, south of Kokomo, that was originally built as part of a partnership with German auto parts maker Getrag but never completed.

"It goes along with the investment in Tipton County," City Council President Mike Kennedy told the Kokomo Tribune . "The investment here includes some pretty decent jobs activity."

Kokomo Mayor Greg Goodnight said the investment will coincide with the plans for the aborted Getrag plant, but said he couldn't release more information.

"We were in discussions with Chrysler today, but we're not to the announcement stage yet," he said.

The council will consider Chrysler's request Monday.

When construction on the Getrag plant began in 2007 at a cost estimated at $100 million, the nearly 800,000-square-foot building at U.S. 31 and State Road 28 was expected to employ up to 1,400 people producing transmissions. But Getrag stopped construction of the plant in 2008 and filed for bankruptcy after Chrysler LLC pulled out of a financing options agreement and left the plant without a primary customer.

If the plant is finished and opened, it could impact Chrysler's Kokomo operations, the Tribune reported. Kokomo's plants were shut down in 2009, but Chrysler decided three years ago to keep transmission building in house instead of contracting the work out, breathing new life into the central Indiana operation with a $1.3 billion investment.