Chrysler Group LLC said Thursday that it will invest $179 million to launch production of a fuel-efficient engine developed by Italian automaker Fiat SpA (FIATY.PK) for the North American market, which will be built at the company's Global Engine Manufacturing Alliance plant in Michigan. The investment will create up to 573 new jobs industry-wide, including up to 155 new jobs at Chrysler.
Chrysler said that the GEMA plant, located in Dundee, Michigan, will produce the Fiat-designed 1.4-liter, 16-valve Fully Integrated Robotized Engine, or FIRE for use in Chrysler's vehicles.
Production of the engine at the plant will begin in the fourth quarter of 2010. The first application of the engine, which is well-suited for small cars, will be in the North American-built Fiat 500 that will go into production in 2011. Chrysler noted that the 1.4-liter FIRE features Fiat's Multiair technology, which delivers an increase in power up to 10% and a reduction in fuel consumption and emissions up to 10% when compared to similar engines.
Sergio Marchionne, Chief Executive Officer of Chrysler Group said, "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."
Fiat, based in Turin, Italy, owns 20% of Auburn Hills, Michigan-based Chrysler. Fiat can boost the stake to 35% by hitting targets, such as building an engine in the U.S. The Italian company took control when Chrysler, the third-largest U.S. automaker, exited bankruptcy protection in June 2009.
Chrysler Chief Executive Officer Sergio Marchionne, who is also running Fiat, is planning to give up the dual role within two years, according to reports earlier this month. He reportedly said that each company will need its own leader within 24 months. He is revamping Chrysler with vehicle designs, engines and transmissions from Fiat.
Marchionne's goal is to more than double the U.S. automaker's global sales to 2.8 million in 2014 from about 1.2 million this year.
In early December, Chrysler reported that its sales for the month of November fell 25% to 63,560 units from 85,260 units in the year-ago period.
FIATY.PK closed Thursday's trading session at $14.95, down $0.20 or 1.32% on a volume of 6,900 shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.