Chrysler has announced that it will begin fitting an eight-speed transmission to select models for the 2013 model year. The ZF Group-sourced slushbox will be built at Team Pentastar's Kokomo, Indiana transmission plant thanks to a $300 million investment by the parent company. That cash commitment secures the 1,200 jobs currently working at the plant.

Eight-speed transmissions provide considerable fuel economy improvements compared to an automatic with five or six forward speeds. Chrysler isn't divulging which products will receive the new transmission, but Wards speculates that the upcoming eight-speed tranny makes the most sense in Chrysler's rear-drive LX platform vehicles like the 300 and Charger. That makes sense to us considering the fact that Chrysler will need to improve fuel economy considerably to meet stringent new EPA standards of 35 miles per gallon by 2016.

Senior Powertrain VP Paolo Ferraro says that the new transmission "will offer our customers refinement and comfort while achieving greater fuel economy and performance." Chrysler plans to improve its overall fuel economy by 25 percent by 2014. For comparison's sake, the ZF-sourced eight-speed transmission used in the BMW 760i is said to improve the big Bimmer's fuel economy by six percent. Learn more by checking out the official video and press release after the jump.



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