Investment Planned For DC Rollouts

Expect Chrysler Group to invest in a second V-6 engine plant and at least one other truck assembly site in the wake of a $1.78 billion outlay targeting four Michigan facilities.

While details are sketchy, insiders confirm the output of a planned $730 million engine plant in Trenton will not meet the anticipated demand for an all-new V-6 family dubbed “Phoenix.”

Scheduled for launch in 2009, the plant — to replace an existing facility — will have a maximum annual capacity of 440,000 units.

Chrysler's engine plant in Kenosha, WI, has been mentioned as another candidate for Phoenix production, but the auto maker does not confirm plans for investment there.

Negotiations with the United Auto Workers union helped secure the Trenton investment by virtue of an agreement that will see a wider application of “team-based” assembly practices.

Meanwhile, a $50 million infusion at Chrysler's truck plant in Warren is intended to accommodate production of a redesigned Dodge Ram pickup, due in 2008.

Chrysler also will spend $700 million and $300 million, respectively, on a new axle plant in Marysville and a paint shop upgrade at its assembly site in Sterling Heights.