The move will enable the company to expand production of its eight-speed transmission vehicles.
The automaker plans to add 850 jobs at its Tipton Transmission Plant by 2015.
Five years after the auto bailout, Senator Joe Donnelly says Indiana's auto industry proves it was a success.
Two recently published studies suggest Indiana’s economy may remain strong despite sequestration.
Chrysler officials announced they will also build a new plant in Tipton County.
Chrysler will have the first 9-speed transmission available which sets up the company as a leader in the industry.
Besides a possible investment in Tipton County, Chrysler is expanding its operations in nearby Kokomo, possibly adding another 400 jobs.
Autoworkers are finding themselves at the heart of Indiana's Senate debate, which has focused largely on job creation and the auto bailout.
The Chrysler plant in Kokomo is using 3D technology to install new equipment into its factory.
Chrysler began its four-day, 10 hour per day work week Sunday at its Kokomo plant.