The company has announced a US$300million investment plan to build the advanced new transmission at a plant in Kokomo, Indiana, with the first products due in 2013. Though the deal signed with ZF of Germany includes the ability to import fully built transmissions to fit to Chrysler Group vehicles before that date.

It means Chrysler will be the first US auto maker to introduce 8-speed transmissions to its vehicles and one of just a handful of elite car companies worldwide to use this feature - currently 8-speed transmissions are restricted to high-end prestige models, such as BMW's 7-series.

Expect to see the new 8-speed auto fitted to future Chrysler 300C, Dodge Charger/Challenger and Jeep Grand Cherokee models.
Chrysler says the new 8-speed auto takes up no more space than a 6-speed transmission, yet it is lighter and delivers 6% better fuel economy. Against 5-speed automatics that are widely used by car companies around the world, the fuel economy difference is around 14%.

"It's a very exciting development because it puts Chrysler, Jeep and Dodge vehicles right at the forefront of new technology development," says Todd Groves, Divisional Manager, Chrysler Group at Sime Darby Automobiles NZ.
"An 8-speed automatic transmission will be much smoother and quieter, as well as more fuel efficient than current generation automatics.
"It's a good indication of the progress Chrysler is making and the confidence being shown in the future of our brands and products."

Mr Groves says the new confidence in Chrysler since its tie-up last year with Italian auto giant Fiat is also being felt in the New Zealand market, where enquiry levels at dealerships for its new vehicles have surged in recent months.
"There's certainly a new air of optimism that is flowing out into the market right now," adds Mr Groves.

The optimism surrounding the future of Chrysler comes on the back of some important developments in recent months.
In addition to the new 8-speed transmission, Chrysler Group is investing US$43million in new equipment and tooling to expand its production of the World Engine that goes into vehicles like the Dodge Caliber and Jeep Patriot, which will see Fiat's award-winning Multiair technology fitted this unit. Chrysler is also investing US$179million at the same plant to produce Fiat's fuel efficient 1.4-litre, 16-valve Fully Integrated Robotized Engine (FIRE) to go into a range of new small cars. And the company has just begun production of its all-new Pentastar V6 engine, which produces improved power and lowers fuel consumption compared to its current range of V6s.

Chrysler says that by 2014 the investment in new technology and the introduction of new vehicles will enable the company to reduce the overall fuel consumption across the range by 25%.
By the end of 2013 it aims to completely renew every vehicle in its range and introduce a number of exciting new designs.