Chrysler planning to withdraw from the Global Engine Manufacturing Alliance

Article by Christian Andrei, on August 29, 2010

As the Chrysler Group moves closer to new partner, Fiat S.p.A., it is mulling a plan to withdraw from the Global Engine Manufacturing Alliance, which also includes Hyundai and Mitsubishi, according to alliance spokesman Len Sennish. The alliance is owned equally by Chrysler, Hyundai Motor Co. and Mitsubishi Motors Corp.

The venture, which is located at Dundee, Mich., started producing four-cylinder engines for Chrysler models in 2005. It has a production capacity of 840,000 engines a year and is one of three plants in the United States, Japan and South Korea that build versions of a common four-cylinder engine platform for the partners in their home markets.

Recently, Chrysler and its new 20% owner, Fiat, have been re-evaluating Chrysler's global product plans. The World Engine made at the alliance comes in four configurations and is available in Chrysler, Dodge and Jeep vehicles.

The 1.8-liter, 2.0-liter and 2.4-liter engines are available in the Chrysler Sebring, Jeep Compass, Jeep Patriot, Dodge Avenger, Dodge Caliber and Dodge Journey.

The Caliber SRT4 is equipped with the 2.4-liter turbocharged engine. The Dundee plant is one of four operated by the alliance. The others are in Shiga, Japan (Mitsubishi); Asan, South Korea; and Montgomery, Ala. Officials at Chrysler and Hyundai declined to comment.

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