Stellantis said it would spend $99 million in three North American plants to create a new four-cylinder turbo engine.
Investments would be made in the Dundee Engine Complex in Michigan, the Kokomo Casting Plant in Indiana and the Etobicoke Casting Plant in Toronto.
The new engine is a 1.6-litre I4 turbocharged engine with direct fuel injection and flexibility for Hybrid Electric Vehicles (HEV). This engine, based on a current production engine in Europe, will power two future North American HEV models and will be the first HEV engine used by the automaker in the region. Production is expected to start in early 2025.
At a cost of $83 million, Dundee Engine will be converted and become the final assembly site for the new engine. The Michigan plant continues production of the 3.6-liter Pentastar upgrade for the Jeep Grand Cherokee and Grand Cherokee L. Production of Tigershark’s 2.4-liter I4 will end in the first quarter of 2023.
Engine blocks are being cast at the Kokomo Casting Plant after spending $14 million to convert existing cast machines and cells for the new engine.
Etobicoke Casting will manufacture the oil pan. The automaker will spend $2 million to support the development and installation of new tools and equipment upgrades.