Chrysler announced it will invest $238 million in two facilities in Michigan to increase production of small, fuel-efficient engines.
Chrysler will invest $198 million to manufacture the Pentastar V6 engine by early 2014 at the Mack I Engine Plant in Detroit, a plant which currently manufactures a larger engine for the Ram 1500 truck. Chrysler is also developing several variants for the 3.6-liter V6 engine, including the 3.2-liter smaller version. The automaker will also invest $40 million to create a flexible production line at the Trenton North facility in Michigan, where it will produce the Tigershark four-cylinder engine and V6 engine.
“You can see a downsizing of engines,” Sergio Marchionne, the chief executive of both Chrysler and Fiat told reporters at the engine plant in Detroit. “We have more and more efficiency out of the (four-cylinder), you’ll see them taking some of the places of the V6s.”
Chrysler also plans to add 250 jobs in Mack and in March 2013 it will add more 1,000 new jobs for the third shift at its Warren Truck Assembly Plant, which manufactures the 2013 Ram 1500 truck. Marchionne said that he would like Fiat, which currently owns 58.5% in Chrysler, to buy the rest of the US automaker, but currently the Italian automaker’s finances undergo an economic downturn.