Michigan Lands Engine Plant

Global Engine Alliance LLC, a joint venture between DaimlerChrysler AG, Hyundai Motor Co. Ltd. and Mitsubishi Motors Corp., will build its North American engine plant on a 260-acre (105 ha) site in Dundee, MI, near the Ohio border.

The 450,000-sq.-ft. (41,806-sq.-m) facility will begin production of a new family of inline 4-cyl. engines for Chrysler Group small and midsize cars beginning in 2005.

Chrysler President and CEO Dieter Zetsche refuses to speculate on projected volume, although the global JV was formed to produce 1.5 million units annually of a family of I-4 engines, including 1.8L, 2.0L and 2.4L variants.

Zetsche does confirm that 40% (600,000 units) of the total annual capacity is destined for Chrysler Group products, while the remaining 60% (900,000 units) will be divided evenly between the Asian partners. The JV also calls for engine plants in South Korea, which will supply Hyundai, and Japan, which will supply engines for Mitsubishi products, both beginning in 2004.

The Michigan plant is expected to create 400 jobs within five years. Global Engine Alliance is working with the United Auto Workers union, but has not given a commitment to unionize the plant.

State and local government officials authorized $115 million in tax incentives.