Michigan Getting Second “World” Engine Plant

Site represents GEMA’s Nafta presence

Global Engine Manufacturing Alliance (GEMA) – the partnership of DaimlerChrysler, Hyundai Motor Co., and Mitsubishi Motors Corp. – plan to build a second plant at the Dundee, MI, site where it has already begun building its first North American installation. GEMA president Bruce Coventry said the second plant will be connected to the existing GEMA plant. It will double the overall operation, which now will start production in two stages beginning in 2005.

The second Dundee facility is listed as a $323-million project. Together, the two Michigan plants will represent GEMA’s Nafta presence. The strategy of the global venture is to produce a common family of four-cylinder aluminum engines around the world, for each of the investor/partners’ vehicle lines.

"Our volume requirements have grown significantly since we began planning the first plant in Dundee," said Coventry. Dundee was chosen after a site-selection process narrowed the candidates to seven locations.

With the new plant, Coventry said, GEMA will be able to leverage its resources more effectively. "The objective is to compete with anybody, anywhere, and we can take advantage of incredible advantages from the standpoint of economies of scale, sourcing and investment. So, we've designed this facility on an entirely different model -- we'll have state-of-the-art production equipment and technology, innovative new processes, and the right people to make it all work."

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