Chrysler to Invest $179M in GEMA Plant

American manufacturer Chrysler Group announced that it will invest $179 million in its Global Engine Manufacturing Alliance (GEMA) plant in Dundee, Michigan, in order to start production of fuel efficient engines for North America. According to the carmaker, this will create up to 155 new Chrysler Group jobs and up to 573 new jobs industry-wide.

The money will be invested in the production of the 1.4-liter, 16-valve Fully Integrated Robotized Engine (FIRE), a collaboration between Chrysler Group and Fiat powertrain groups.

"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 Sergio Marchionne, Chrysler Group LLC Chief Executive Officer.

"This project further demonstrates that Michigan has the competitive business climate, infrastructure and talented workforce to compete in the global marketplace,"
said Governor Jennifer M. Granholm.

"We are pleased and excited with the I-4 FIRE engine loading at GEMA. The UAW is committed to working with the Company to continue doing everything we can to ensure this new engine launch is successful," said General Holiefield, Vice President and Director of the UAW, Chrysler Department.

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 US-built Fiat 500 that will enter production in 2011. The other GEMA plant will continue to produce the World Gas Engine, Chrysler Powertrain's naturally-aspirated, four-cylinder engine family.
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