City considers tax abatement for Stellantis
Company to invest $155 million in Kokomo to produce electronic drive modules
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As the automotive industry begins its march to produce electric vehicles, Stellantis is making moves in Kokomo to transform its operations. The company intends to invest $155 million in its existing plants to manufacture electronic drive modules.
The initial announcement of the investment took place on Feb. 28. The Kokomo Common Council met on April 24 to pass a resolution declaring the city’s intent to issue a tax abatement to Stellantis in support of the investment.
“Stellantis will begin installation of manufacturing equipment to produce new electric drive modules that will help power the future of electric vehicles,” stated council member Kara McKibben, who offered the resolution. “The re-tooling will impact Indiana Transmission Plant I, Kokomo Transmission Plant, and the Kokomo Casting Plant.”
The proposed 10-year abatement would step down over time, reducing by 10 percent each year. The company asserted that the investment will allow it to retain 262 jobs in Kokomo with salaries totaling $17.5 million.
The passage of the resolution is just the first step in the abatement process. The council will entertain a confirmatory resolution on the abatement at its May 8 meeting, along with a memorandum of agreement and a contract containing a binding commitment from the company.