KOKOMO, Ind. (AP) -- Delphi Automotive Systems LLC has asked Kokomo for a $50 million property tax abatement for a new plant and expansion of an existing one as it increases work on electric-drive vehicles.
The Troy, Mich.-based auto supplier has told officials in the north-central Indiana city the project would save 72 jobs and create 118 more. It plans to lease and equip an empty 90,000-square-foot building and use space at an existing plant to develop systems for electric vehicles.
The Kokomo Tribune reported Friday that Delphi is seeking a five-year tax break on manufacturing, information technology and research and development equipment needed for the project. The city council will consider the proposal Monday. A final vote is expected April 26.
Delphi said in documents provided to city officials that the average pay for the jobs saved would be about $93,000 and the new positions will average about $64,000.
Delphi received an $89.3 million economic stimulus grant from the U.S. Department of Energy in December to produce electric-hybrid technology in Kokomo. The company said it would match the grant as part of a three-year investment that includes expanding its power electronics business line.
Delphi expects the first products from the new facility will be parts and systems for Allison Transmission, an Indianapolis-based maker of commercial-duty automatic transmissions, hybrid propulsion systems and parts for trucks and buses, off-highway equipment and military vehicles.
Delphi had said earlier that it expected to add or keep 190 jobs in Kokomo, and its latest numbers are in line with that.
The company currently employs about 1,200 people at its Kokomo Electronics and Safety division.
