Car maker Chrysler Group is to invest nearly $374m (£248m) in boosting transmission production in two plants in Indiana, creating around 1,250 new jobs at the firm.

The first investment sees $212m in the Kokomo Transmission, Kokomo Casting and Indiana Transmission I Plants, all in the town of Kokomo. The money will be spent on new equipment to produce eight and nine-speed transmissions, which should be installed in Q4 2013, creating up to 400 new jobs.

Meanwhile, $162m will be invested in acquiring and re-fitting the Tipton Transmission Plant formerly owned by parts manufacturer Getrag, establishing a new assembly site for nine-speed transmissions. As a result 850 new jobs will be created and production will start in the first quarter of 2014.

Hiring for Kokomo roles will begin in Q2 and for jobs at Tipton in Q4, via chryslercareers.com.