Chrysler to Build 1.4l Fiat Engine

The first Italian sourced engines to be build States side by American manufacturer Chryesler has been announced today as being Fiat's 1.4l, four cylinder units. To accommodate the production of the new engines, Chrysler will invest $179 million in upgrading its Dundee, Michigan facility.

The plan is to produce at least 250,000 engines each year (1.4l Multiair 4 cylinder gasoline engine), an effort which will call for the additional employment of some 155 people, just-auto.com reports, citing Chrysler's filing for job-creation tax credit with the state of Michigan.

As you might have guessed, the engines built in the US will go under the hood of the Fiat 500, the first Italian car to enter the American market. The move is part of the five-year revival plan presented in the beginning of the month by the American carmaker.

As part of that plan, Fiat will also bring to the US three Italian built vehicles: a subcompact hatchback, compact sedan and midsize sedan – in fact, the Fiat 500 and the replacements for the Dodge Caliber and Avenger.

In exchange for the Italian technology transfer, Chrysler will scrap the Dodge Caliber and Avenger, the Viper in 2010 and the Patriot and Compass in 2012.

As for the 500, the mini car will be available at Chrysler dealerships in early 2010. The car will be offered in all three available versions (hatchback, the convertible and the Abarth version). The 500 will also be available in several special versions and limited editions.