Chrysler Group says it will invest US$114m in new equipment at its Trenton Engine complex in Michigan, creating a possible 268 jobs.

The investment will be used to rejig one-fifth or nearly 400,000-square feet of the Trenton North engine plant, which ceased operations in May, to make parts for the Pentastar engine at its sister plant, Trenton South, the company said.

"As Chrysler Group moves to replace seven V-6 engines with the new Pentastar V-6, it has become necessary to add capacity on core components in order to meet the production demands of this new engine," said head of powertrain manufacturing and vice president Brian Harlow.

Trenton South launched the new Pentastar engine in March 2010, which is now available in ten Chrysler Group vehicles including: Jeep Grand Cherokee; Dodge Avenger; Dodge Grand Caravan; Dodge Journey; Dodge Charger; Dodge Challenger; Dodge Durango; Chrysler 200; Chrysler 200 Convertible and Chrysler Town & Country.

"On Monday, 13 June, the Trenton City Council and I approved Chrysler Group LLC's Industrial Facilities Exemption for a $114m manufacturing project in its North Plant," said Trenton Mayor Gerald Brown.

Chrysler Group has invested nearly $3.2bn in its US facilities, since June 2009.