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Chrysler to invest $179 million in Dundee plant

by Bill Cawthon on

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.

Bill Cawthon grew up in the auto industry in the 1950s. His Dad worked for Chrysler and Bill spent a number of Saturdays down on the plant floor at Dodge Main in Hamtramck. Bill is also the U.S. market correspondent for just-auto.com, a British auto industry publication, and a member of the Texas Auto Writers Association, which has named the Jeep Grand Cherokee the “SUV of Texas” several times and named the Ram 1500 as the “Truck of Texas” two years running.

Bill has owned five Plymouths (including the only 1962 “Texan”), one Dodge and one Chrysler and is still trying to figure out how to justify a Wrangler. He also has owned at least one of every 1:87 scale model of a Chrysler product. You can reach him directly at (206) 888-7324 or by using the form.

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