Stellantis said it would spend $99 million across three North American plants to make a new four cylinder turbocharged engine.
Investments would be made at the Dundee Engine Complex in Michigan, Kokomo Casting Plant in Indiana and the Etobicoke Casting Plant in Toronto.
The new engine is a 1.6-litre, I4 turbocharged unit with direct fuel injection and flexibility for hybrid-electric vehicle (HEV) applications. Based on a current production engine in Europe, this engine will power two future North American HEV models and will be the first HEV engine used by the automaker in the region. Production is expected to begin early in 2025.
At a cost of $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-litre Pentastar upgrade for the Jeep Grand Cherokee and Grand Cherokee L. Output of the Tigershark 2.4-litre I4 will end in the first quarter of 2023.
Engine blocks will be cast at the Kokomo Casting Plant after a $14 million spend to convert existing die cast machines and cells for the new engine.
Etobicoke Casting will produce the oil pan. The automaker will spend $2 million to support the development and installation of new tooling and equipment upgrades.