Stellantis Announces $99 Million Total Investment for New Engine Production at Three North American Plants

Rhea-AI Summary

Stellantis announced a total investment of $99 million in three North American plants to produce a new 1.6-liter turbocharged engine for hybrid-electric vehicle (HEV) applications. The investment includes $83 million for retooling the Dundee Engine Complex in Michigan, with production set to start in early 2025. The Kokomo Casting Plant will receive $14 million for upgrades, and nearly $2 million will be allocated to the Etobicoke Casting Plant for new tooling. This initiative aligns with Stellantis' Dare Forward 2030 strategy.

Positive

• Total investment of $99 million shows commitment to North American operations.
• Production of the new 1.6-liter turbocharged engine supports future HEV models.
• Investment in three plants enhances local manufacturing capabilities.

Negative

• None.

AUBURN HILLS, Mich., Aug. 1, 2022 /PRNewswire/ --

• Company to produce new four-cylinder turbo engine
• Investments will be made at Dundee (Michigan) Engine, Kokomo (Indiana) Casting and Etobicoke (Toronto) Casting
• New engine designated for HEV applications for future North American models
• Investment supports company's Dare Forward 2030 long-term strategy

Stellantis announced today that it will invest a total of $99 million in three North American plants for production of a new four-cylinder turbocharged engine. Investments will be made at the Dundee Engine Complex in Michigan, the Kokomo Casting Plant in Indiana and the Etobicoke Casting Plant in Toronto.

The new engine is a 1.6-liter, I-4 turbocharged unit with direct fuel injection and flexibility for hybrid-electric vehicle (HEV) applications. Based on a current Stellantis production engine in Europe, this next-generation engine will power two future North American HEV models. This will be the first HEV engine for the company in the region. Production is expected to begin in early 2025.

With an investment of nearly $83 million, Dundee Engine will be retooled and become the final assembly location for the new engine. The Michigan plant will continue production of the 3.6-liter Pentastar Upgrade for the Jeep® Grand Cherokee and Jeep Grand Cherokee L. The Tigershark 2.4-liter I-4 engine will build out in the first quarter of 2023.

Engine blocks will be cast at the Kokomo Casting Plant, one of the largest facilities of its kind in the world. More than $14 million will be invested to convert existing die cast machines and cells for the new engine.

Etobicoke Casting will produce the oil pan for the new engine. The company will invest nearly $2 million to support the development and installation of new tooling and equipment upgrades.

These investments support Stellantis' Dare Forward 2030 strategic plan of delivering innovative, clean, safe and affordable mobility solutions.

Stellantis North America
Stellantis (NYSE: STLA) is one of the world's leading automakers and a mobility provider. In North America, it's best known for producing and selling vehicles in a portfolio of iconic and award-winning brands such as Jeep®, Chrysler, Dodge, Ram, Alfa Romeo and Fiat. Powered by its diversity, Stellantis leads the way the region and the world move – aspiring to become the greatest sustainable mobility tech company, not the biggest, while creating added value for all stakeholders as well as the communities in which it operates. For more information, visit www.stellantis.com. 

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Company website: www.stellantis.com
LinkedIn: https://www.linkedin.com/company/Stellantis
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SOURCE Stellantis

FAQ

What is Stellantis's recent investment in North America?

Stellantis recently announced a total investment of $99 million for new engine production in North America.

What will the investment at Dundee Engine Complex entail?

The Dundee Engine Complex will receive $83 million for retooling to produce a new turbocharged engine.

What type of engine is Stellantis developing?

Stellantis is developing a 1.6-liter turbocharged engine for hybrid-electric vehicle applications.

When is production of the new engine expected to start?

Production of the new engine is expected to begin in early 2025.

How much is being invested in Kokomo Casting Plant?

The Kokomo Casting Plant will receive $14 million for upgrades to support the new engine production.