Chrysler announced today that it plans to invest $198 million in its Mack Avenue Engine facility in Detroit to manufacture its Pentastar engine.
The investment in the Mack Avenue Engine facility will create about 250 new jobs. The facility is situated in Detroit and was bought by Chrysler in 1953. Currently the company manufacturers here the 4.7-liter V8 engine for the Ram 1500.
“Chrysler Group will be working with the city of Detroit and the state of Michigan regarding potential economic development incentives to assist us in making the business case for the investment, ” the company said in a statement.
The news about this investment comes after the company announced two weeks ago it plans to close its adjacent Mack Avenue Engine II plant on September 9th, and lay off 200 employees, who will be considered for new jobs created at Mack Avenue Engine I and at other Chrysler plants that will be opened in the area.
Currently Chrysler produces at Mack Avenue II the 3.7-liter V6 engine for the Jeep Liberty and Ram 1500, but this type of engine will be discontinued and replaced by the 3.6-liter Pentastar V6.