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Chrysler to Build Engines for Fiat 500

Automaker planning $179 million Michigan investment.

by on Dec.18, 2009

Chrysler will produce the engine for the North American Fiat 500 at a plant near Detroit, requiring a $179 million investment.

Chrysler will produce the engine for the North American Fiat 500 at a plant near Detroit, a move that will cost it $179 million.

Engines built in Michigan will be exported to Mexico for use in the North American version of the Fiat 500, starting in late 2011, according to Chrysler’s top executive.

Chrysler plans to launch production of a 1.4-liter inline-four engine at the company’s Global Engine Manufacturing Alliance plant, in Dundee, Michigan, by the end of 2011, said Chrysler CEO Sergio Marchionne.

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“This is one more important step forward that demonstrates our intent to deliver on the promise of the Fiat-Chrysler strategic alliance and the substance of the road map we laid out in November,” Marchionne said.

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