Chrysler Blog - Moving at Light Speed: Chrysler Invests Big In Fuel Effciency

Chrysler Blog - Moving at Light Speed: Chrysler Invests Big In Fuel Effciency

Just 18 months after Chrysler Group LLC and Fiat S.p.A formed an alliance, the two companies will bring a mega fuel-efficient engine to the North American market. (In the auto industry, this is nothing short of light speed).

The hardware in question is the 1.4-liter, 16-valve Fully Integrated Robotized Engine (FIRE) which will find an important place in Chrysler Group’s growing fleet of fuel efficient vehicles. It will come to North America through a $179 million investment Chrysler is making in the Global Engine Manufacturing Alliance (GEMA), based in Dundee, MI. FIRE will include the Multiair technology (more on that soon) that increases fuel economy 10% while lowering C02 emissions by just as much.

“Multiair gives the engine the lungs of an athlete,” said Chrysler Group LLC CEO Sergio Marchionne in announcing the project today.

The engine will go into production in the fourth quarter of next year in the Fiat 500, which will be sold throughout North America. That speedy timeline less than a year and a half after the Fiat-Chrysler alliance was solidified, a speed which Marchionne notes is a “record.” The investment also represents a major milestone toward achieving Chrysler’s five-year Business Plan.

“It demonstrates how fast we’re moving to integrate fuel-efficient technology into Chrysler’s powertrain portfolio with Fiat, secondly how we intend to implement our World Class Manufacturing Initiative, thirdly to broaden Chrysler Group’s reach into the A and B segment of the car world, and fourthly it’s to begin to provide jobs and other economic benefits,” said Marchionne.

The investment also will create up to 573 new jobs industry-wide, including up to 155 new Chrysler Group jobs at the plant. Michigan Governor Jennifer Granholm who joined Marchionne today to announce the investment, said GEMA is a shining example of a flexible workforce that’s ready to adapt and build new products.

“Thank you on behalf of Dundee and on behalf of the state of Michigan for the choice of continuing and expanding the operation, thank you for the decision to invest $179 million and to expand another 155 people … the indirect benefits are obviously enormous to the state,” Granholm said.