Astemo is putting more than $11 million into its Muncie, Indiana, manufacturing facility as the automotive supplier prepares to expand production of intake manifolds for gasoline and hybrid vehicles.
The project will add injection-molding capacity and a dedicated assembly line, with production scheduled to begin in March 2027. Astemo expects the expansion to create up to nine additional jobs over three years.
While the hiring figure is modest, the investment gives the company more manufacturing capacity in a market where automakers continue to build vehicles with a mix of conventional engines and hybrid powertrains.
Astemo’s $11 Million Investment Adds New Manufacturing Capacity
The planned investment will expand Astemo’s existing operation in Muncie, a city in east-central Indiana. Rather than establishing an entirely new factory, the company is adding equipment and production capabilities to a facility that has been part of its manufacturing network since 1999.
The project includes additional injection-molding capacity and a new assembly line dedicated to intake manifolds for internal combustion engine and hybrid electric vehicle applications.
Injection molding is an important process in automotive component manufacturing. It involves forcing heated material into a shaped mold, where it cools and takes the form of a specific part.
In automotive applications, the process is commonly used to manufacture plastic components that need consistent dimensions, repeatable quality, and compatibility with high-volume production.
Adding molding capacity can give a supplier more room to manufacture components internally and coordinate their production with downstream assembly operations.
For Astemo, the additional equipment is being paired with a new intake-manifold assembly line. An intake manifold directs incoming air toward an engine’s cylinders, helping distribute airflow across the engine.
Its design and construction vary depending on the engine type and the specific requirements of the vehicle. Rather than serving as a simple connecting pipe, the component plays a role in directing airflow to the engine, with its shape and performance affecting how efficiently air is delivered.
The company has not disclosed the specific vehicle models or automakers that will receive parts from the expanded Muncie operation. It has also not published the planned annual production volume, the number of molding machines being installed, or the expected capacity increase.
Those details matter because the $11 million-plus investment alone does not reveal how much additional output the facility will deliver once the new equipment is operational.
Astemo expects the new assembly line to enter production in March 2027. That date gives the company several months to install equipment, prepare the production process, and make the necessary staffing arrangements.
The announcement does not provide a more detailed construction or commissioning schedule, so the March date should be treated as the company’s current production target rather than confirmation that manufacturing has already started.
The project also received local government support. The Muncie City Council approved a five-year tax abatement for the program, according to Astemo’s announcement. Tax abatements can reduce a company’s eligible tax costs over an agreed period, helping make an expansion more financially attractive.
The announcement does not specify the total value of the tax benefit, so it would be inaccurate to describe it as a particular dollar amount or as a direct cash grant.
Why Intake Manifolds for Gasoline and Hybrid Vehicles Matter
One of the most important aspects of the project is that the new assembly line will serve both internal combustion engine vehicles and hybrid electric vehicles. That gives the investment a broader application than a production expansion tied exclusively to conventional gasoline vehicles or battery-electric vehicles.
Hybrid vehicles combine an internal combustion engine with an electric motor and battery system. Depending on the hybrid configuration, the engine may operate alongside the electric motor, switch on and off during driving, or provide power under particular conditions.
Although hybrid systems add electric propulsion components, they still rely on an engine that requires an appropriate air-intake system. This means intake manifolds remain relevant to a substantial category of electrified vehicles.
The distinction is important for suppliers planning factory investments. A facility dedicated only to conventional powertrain components could face greater exposure if demand shifts toward other propulsion technologies.
By specifying both ICE and HEV applications, Astemo is positioning the new line to support two types of vehicle programs that share the need for an internal combustion engine.
That does not mean the company is announcing a new hybrid technology or a component that will be used across every hybrid vehicle. The press release does not identify the manifold designs, engine families, or customer programs involved.
The announcement does not clarify whether the new production line will manufacture separate component variations for different vehicle platforms. What has been confirmed is that production will include intake manifolds designed for both conventional gasoline engines and hybrid powertrains.
The expansion also illustrates why the growth of hybrid vehicles does not automatically eliminate demand for traditional engine components. Battery-electric vehicles do not use conventional intake manifolds because they do not have internal combustion engines.
Hybrids, however, retain an engine and therefore continue to require many of the systems associated with gasoline-powered vehicles. Suppliers that can serve both conventional and hybrid programs may be able to participate in a wider range of vehicle production.
For automakers, component availability is a practical part of keeping vehicle assembly operations running. Intake manifolds must meet the engineering specifications of the relevant engine and be delivered in the quantities required by production schedules.
A supplier’s ability to manufacture and assemble those parts consistently can therefore matter to vehicle production planning.
Astemo’s announcement does not identify a particular automaker as the customer for this expansion. It would be premature to connect the investment to a specific upcoming model or claim that it confirms a new contract.
What the company has made clear is that the additional capacity is intended for intake-manifold production across gasoline and hybrid vehicle applications.
Muncie Facility’s Workforce and Astemo’s Long-Term Manufacturing Strategy
Astemo’s Muncie operation is an established manufacturing site rather than a newly selected location. The facility was established in 1999 and currently employs approximately 188 people. Around 70% of its workforce lives in Muncie, according to the company’s announcement.
That local employment base gives the expansion significance beyond the equipment being installed, particularly because the project is expected to create additional manufacturing opportunities over the next three years.
Astemo estimates that the project could create up to nine additional jobs. However, this figure represents the maximum number of new positions expected rather than a confirmed hiring commitment. It also does not mean that all nine roles will be filled as soon as the production line becomes operational.
The company has not provided a detailed hiring timetable, job descriptions, or wage information. It has directed people interested in employment to its careers website, where current openings can be reviewed.
The hiring plan is relatively small compared with the facility’s existing workforce, but manufacturing expansions do not always require large increases in headcount. New equipment can increase production capability while existing employees continue to handle many of the facility’s established manufacturing and support responsibilities.
The actual staffing requirements will depend on the equipment, production volumes, and operating arrangements selected for the new line.
The investment also reflects the importance of existing industrial locations in regional economic development. The Economic Development Alliance of Muncie-Delaware County worked with Astemo’s local leadership and government partners as the company developed its expansion plans.
The Alliance has identified advanced manufacturing focused on transportation equipment and mobility as a priority sector for the county. Retaining an established supplier and supporting additional investment can help preserve the area’s role in the automotive supply chain.
Astemo Americas manufactures and markets engine-management systems, electric-powertrain products, and integrated vehicle controls for automotive manufacturers. Its wider business also includes technologies for software-defined vehicles, advanced driver assistance and autonomous driving, chassis systems and powertrains.
The company’s Muncie investment is specifically focused on manufacturing capacity for intake manifolds, but it sits within a broader business serving multiple areas of vehicle technology.
Astemo is headquartered in Tokyo and operates as a joint venture involving Hitachi, Honda, and JIC Capital. The company says it has approximately 80,000 employees worldwide, with operations across the Americas, Asia, China, Europe, and Japan.
Its Muncie facility is one part of that international manufacturing footprint, and the latest investment reinforces the company’s intention to continue using the Indiana site for automotive component production.
The next major milestone will be the expected March 2027 start of production. Until then, the key measures to watch are the installation of the additional molding equipment, preparation of the intake-manifold assembly line, and recruitment of the planned workers.
Astemo has not announced production volumes or named vehicle programs, so the full commercial impact will become clearer as those details emerge.
For Muncie, the project represents more than $11 million in planned industrial investment, a potential increase in local employment and continued activity at a facility that has operated for more than 25 years.
For the automotive supply chain, it is a reminder that investment in electrification does not mean every conventional engine component is becoming obsolete.
As long as automakers continue producing hybrids alongside gasoline vehicles, suppliers will still need manufacturing capacity for components that serve both powertrain types.
