June 14, 2007

Chrysler Group announces major investment in Kenosha Engine Plant


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Kenosha, Wisconsin – The Chrysler Group has announced an investment of US$450 million in its Kenosha, Wisconsin Engine Plant in preparation for the launch of a new family of V6 engines. The investment and retooling are part of an extensive powertrain offensive that will commit a total of US$3 billion to develop and launch the new engines, known as “Phoenix” engines.

The investment also includes a dual-clutch transmission joint venture with German parts maker Getrag, and new common axle family. The plant, scheduled to begin production in January 2011, will have an annual production capacity of 400,000 engines when it reaches full volume; retooling will begin in June 2010. Once the plant is fully operational, it will employ 700 full-time workers.

The Chrysler Group has been in Kenosha since 1987, when it acquired the American Motors Corporation located there. The company’s current 2.7-litre V6 has been produced there since 1997, followed by the 3.5-litre V6 in 1999. It becomes the third Phoenix engine plant announced since April 2007, along with Trenton, Michigan and Saltillo, Mexico. The company will also construct an all-new plant in Marysville, Michigan to build a new line of axles.

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