Jeep maker Stellantis NV will invest $99 million at its Dundee Engine Complex and two other components plants in North America for production of engines that can be used in hybrids.
The new 1.6-liter, I-4 turbocharged engine with direct fuel injection is based on a current engine in production in Europe. It will power two future hybrid models in North America. Production is expected to begin in early 2025 in Dundee with other parts made in Toronto and Kokomo, Indiana.
Rivals like General Motors Co. are passing over the complexity and expense of hybrids in favor of fully electric vehicles, but Stellantis believes the dual technology powertrains are necessary in the transition to all-electric transportation for many customers. It predicts half of U.S. sales will be all-electric by the end of the decade and all sales in the country will be fully electric in 2038.
The transatlantic automaker will invest $83 million in Dundee, where final assembly of the engine will be done. It also will continue production of the 3.6-liter Pentastar Upgrade for the two-row and three-row Grand Cherokees.
Production of the Tigershark 2.4-liter I-4 engine in Dundee will end in the first quarter of 2023. Stellantis said there isn’t expected to be any impact on full-time positions.
Kokomo Casting Plant also will cast engine blocks for the new powertrain. A $14 million update will covert existing die cast machines and cells for the new technology.
Etobicoke Casting in Toronto will produce the oil pan after a nearly $2 million investment for the development and installation of new tooling and equipment.
The announcement gives some idea of the future for employees at the plants, especially in Dundee, which Stellantis passed over for Kokomo to build a $2.5 billion EV battery manufacturing facility with Samsung SDI.
“This investment in a new four-cylinder engine will add job security for the members who continue to build ICE products as the industry transitions to electrification,” UAW Vice President Cindy Estrada said in a statement. “The hard work and dedication of the UAW Stellantis membership to build great products with world class quality has been recognized and rewarded today.”
Stellantis also recently unveiled its new Hurricane inline-6 engine to replace its V-8s as emissions regulations become more stringent. The Hurricane is built in Mexico.
bnoble@detroitnews.com
Twitter: @BreanaCNoble