Chrysler Group President and CEO Dieter Zetsche, Michigan Governor Jennifer Granholm and United Auto Workers Vice President Nate Gooden have announced that Dundee, Michigan, has been chosen as the preferred site in the United States for a new engine production facility.

The facility has been planned by Global Engine Alliance LLC, the joint venture created by Chrysler Group, Hyundai Motor Company and Mitsubishi Motors Corporation.

“We are moving aggressively ahead with our plans to build a facility and begin production of a new family of fuel- and emissions-efficient powerplants,” said Zetsche. “These engines will power future generations of Chrysler Group vehicles, and may also supply the needs of our Alliance partners.”

The final agreement for the 245-acre Dundee site is still subject to several government approvals, as well as internal corporate approvals.

Zetsche credited the close relationship between the Global Engine Alliance partners, the UAW, and state and local governments leading up to the announcement. “There are three main ingredients to moving this project forward,” Zetsche said. “The people, the place, and the products. Everyone worked to bring these ingredients together in the most productive way.”

It is planned that approximately 400 jobs will be created at the plant within five years.

The project pools the resources of the three companies in a method termed “Cross-Functional Team Participation,” where each partner takes the lead in a specific area for the plant development plan and implementation, including plant layout, production processes and workforce strategy.

In May 2002, the three companies announced they had entered into the Global Engine Alliance LLC joint venture, to design, develop and engineer a family of four-cylinder engines.

The first Alliance partner to manufacture the engine will be Hyundai, which will begin production in 2004 at a plant in Korea. Mitsubishi will also begin production in Japan in 2004. Production at the US facility is scheduled to begin in 2005.

Total annual worldwide production of this engine is estimated at over 1.5 million units.

Chrysler Group is a business unit of DaimlerChrysler AG. DaimlerChrysler AG also holds equity positions in Mitsubishi Motors Corporation (more than 37%) and Hyundai Motor Company (more than 10%).