AUBURN HILLS, Mich. – Chrysler Group LLC will invest $179 million to pave the way for production of
an advanced technology, fuel-efficient engine for the North American market.

UAW Vice President General Holiefield (left) and Chrysler
Group LLC CEO Sergio Marchionne. |
The engine will be built by members of UAW Local 723 at the company’s
Global Engine Manufacturing Alliance (GEMA) plant in Dundee, Mich.
The investment, which was announced Thursday, will create up to 573 new jobs
industry-wide, including up to 155 new Chrysler Group jobs.
Workers at the GEMA plant 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 Chrysler Group LLC Chief
Executive Officer Sergio Marchionne.
Michigan Gov. Jennifer Granholm hailed Chrysler Group’s decision to
build the new engine at the GEMA facility, calling it a significant step to
help grow and diversify the state’s economy.
“This project further demonstrates that Michigan has the competitive
business climate, infrastructure and talented workforce to compete in the global
marketplace,” she said.
UAW Vice President General Holiefield, director of the union’s Chrysler
Department, said: "We are pleased and excited with the I-4 FIRE engine
loading at GEMA.
Marchionne and Michigan Gov. Jennifer Granholm. |
“The UAW is committed to working with the company to continue doing
everything we can to ensure this new engine launch is successful."
Thursday’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.

Fiat's MultiAir system on the 1.4-liter FIRE. |
Well-suited for a small car application, Fiat’s 1.4-liter, in-line four-cylinder
FIRE delivers 100 horsepower (75 kW) at 6,750 rpm and 95 lb.-ft. (129 N•m)
of torque at 4,250 rpm.
The engine features Fiat’s MultiAir technology, which significantly
reduces emissions while improving fuel economy and power delivery.
A turbo version of the engine is also planned and will produce a fuel
economy improvement up to 25 percent when compared to a V-6 engine with equivalent
power.
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.