Chrysler Group LLC to Invest $179 Million in Jobs for Michigan, Fuel Efficient Engines for North America

  • Company Is Delivering on the Promise of the Fiat-Chrysler Strategic Alliance, says Chrysler Group CEO Marchionne
  • A Significant Step to Grow and Diversify State’s Economy, says Michigan Governor Granholm
December 16, 2009 , Auburn Hills, Mich. -  Chrysler Group LLC will invest $179 million to launch production of an advanced technology, fuel-efficient engine for the North American market, which will be built at the company’s Global Engine Manufacturing Alliance (GEMA) plant in Michigan.

The investment will create up to 573 new jobs industry-wide, including up to 155 new Chrysler Group jobs.

The GEMA plant, located in Dundee, Michigan, will produce the 1.4-liter, 16-valve Fully Integrated Robotized Engine (FIRE) for use in Chrysler Group’s growing fleet of fuel-efficient vehicles. FIRE is a collaboration between Chrysler Group and Fiat powertrain groups and will include Fiat’s innovative advanced technologies to reduce engine emissions and improve fuel economy.

“This is one more important step forward that demonstrates our intent to deliver on the promise of the Fiat-Chrysler strategic alliance and the substance of the road map we laid out in November,” said Sergio Marchionne, Chrysler Group LLC Chief Executive Officer.

“This project further demonstrates that Michigan has the competitive business climate, infrastructure and talented workforce to compete in the global marketplace,” said Governor Jennifer M. Granholm.

"We are pleased and excited with the I-4 FIRE engine loading at GEMA. The UAW is committed to working with the Company to continue doing everything we can to ensure this new engine launch is successful." said General Holiefield, Vice President and Director of the UAW, Chrysler Department.

Today’s announcement follows a thorough site selection review by the company and actions by the Michigan Economic Development Corporation and the Village of Dundee in support of the project.

Production of the 1.4-liter engine at GEMA will begin in the fourth quarter of 2010. The first application of the engine will be in the North American-built Fiat 500 that will go into production in 2011.

Chrysler Group has two plants at the GEMA complex, located at 5800 North Ann Arbor Road outside Dundee. In addition to the South plant which will produce the FIRE, the North Plant, opened in October 2005, produces the World Gas Engine, Chrysler Powertrain’s naturally-aspirated, four-cylinder engine family.

About Chrysler Group LLC
Chrysler Group LLC, formed in 2009 from a global strategic alliance with Fiat Group, produces Chrysler, Jeep®, Ram, Dodge, Mopar® and Global Electric Motorcars (GEM) brand vehicles and products. With the resources, technology and worldwide distribution network required to compete on a global scale, the alliance builds on Chrysler’s culture of innovation – first established by Walter P. Chrysler in 1925 – and Fiat’s complementary technology – from a company whose heritage dates back to 1899.

Headquartered in Auburn Hills, Mich., Chrysler Group LLC’s product lineup features some of the world's most recognizable vehicles, including the Chrysler 300, Jeep Wrangler and Ram. Fiat will contribute world-class technology, platforms and powertrains for small- and medium-sized cars, allowing Chrysler Group to offer an expanded product line including environmentally friendly vehicles.

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