Chrysler to invest $179 million in Dundee plant

Chrysler will invest $179 million in the Dundee, Michigan plant it formerly shared with Mitsubishi and Hyundai in the Global Engine Manufacturing Alliance which was dissolved earlier this year. The funding will be used to covert production to building Fiat’s 1.4-liter, four-cylinder engines. The plant is expected to produce about 250,000 engines each year and will add an estimated 155 new jobs to the plant.

THe change will also help Fiat SpA to achieve one of the goals set by the government for increasing its ownership of Chrysler. By building an engine in the U.S., Fiat can increase its stake to 25 percent. It’s anticipated that Fiat will be able to achieve all the benchmarks to have a 35 percent controlling ownership of Chrysler by the end of 2011.