Stellantis plans $83M investment at Dundee Engine plant for hybrid-electric models

The Dundee Engine Plant will be retooled to become the final assembly location for a new four-cylinder engine for two future hybrid-electric Stellantis models coming to North America, the company announced Monday.

The plant, which is southwest of Detroit, will see an investment of $83 million, with engine production slated to begin in early 2025, according to a news release.

The new 1.6-liter, inline-four cylinder turbocharged engine will be based on a current Stellantis engine in Europe and will have “flexibility” for hybrid-electric, or HEV, vehicle applications, the company said, noting that this will be the first HEV engine for the company in the region. Stellantis owns the Jeep, Ram, Chrysler, Dodge, Fiat, Alfa Romeo and Maserati brands.

“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,” the company said.

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The investment is not expected to have any impact on the number of full-time positions at the plant, according to company spokeswoman Jodi Tinson. As of June, Dundee had 987 workers (853 hourly and 134 salaried), according to the company.

The announcement for Dundee is the largest piece of a total $99 million investment announced Monday, which the company tied to its Dare Forward 2030 business plan. The release said the company would also invest more than $14 million at the Kokomo Casting Plant in Indiana to convert die cast machines and cells for the new engine and $2 million at Etobicoke Casting in Toronto for upgrades and new tooling so it can produce the engine’s new oil pans.