Tipton picked: county gets state-of-the-art GETRAG/Chrysler transmission plant.

WHILE GETRAG/CHRYSLER Group's June announcement that it will build a transmission plant in Tipton doesn't mean new jobs because the 1,170 employees will come from the Chrysler Group Kokomo-area Enhanced Layoff Pool, the $530 million investment is still big news for the county.

It's a giant boost for the county's tax base and sure to enhance retail, housing and other business sectors, community leaders predict.

"Tipton County has historically been an agricultural county, a teeny county with a small population of 16,500, so getting a new manufacturer like this is huge," says William Keir, executive director of the Tipton County Economic Development Corp. The county's current total assessed value is $800 million. Adding $530 million in assets is significant, he notes.

"It's the greatest single investment ever made in Tipton County," says Monty Henderson, president of the Tipton Board of Commissioners. "The GETRAG/ Chrysler relationship provides us the comfort of a corporation that has a heritage in our region with one of international diversity--the best of both worlds."

The two companies have created a joint venture to build an 804,000-square-foot facility on 145 acres four miles outside the town of Tipton, at State Road 28 and U.S. 31. Availability of that location had a lot to do with the manufacturer choosing Tipton, Keir says

Construction is already under way in the community 35 miles north of Indianapolis. When production begins in June 2009, GETRAG/ Chrysler will make 700,000 fuel-efficient, dual-clutch transmissions a year.

For Tipton County, the economic pluses start with spending by construction crews, Keir says. "We'll have hundreds and hundreds of construction workers here."

That will spur other sectors in the county, he says. "Tipton County will see a strong, measured growth in opportunities for new housing and retail expansion starting several months after the plant opens. He also expects new, smaller manufacturers to choose Tipton and growth in the service sector because of the new plant.

It's the first U.S. venture for GETRAG, a German company that is the world's largest independent transmission manufacturer, which is joining forces with Michigan-headquartered Chrysler Group. Once the currently idled Chrysler employees are on the payroll, the plant will be Tipton's largest employer. They will be employed by Chrysler and leased to GETRAG. Plans are for GETRAG to own the land and building, and the machine and tooling to be split between the two companies. Management and engineering staffs will come from both companies.

The transmissions to be made will provide better shift quality, driving comfort and 5 percent to 10 percent improved fuel efficiency compared to more conventional technologies.