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Stellantis Investing $99M for New HEV Engine

Aug. 1, 2022
The automaker plans to produce a hybrid-electric engine for the North American market, and will update two aluminum diecasting plants and an engine assembly plant for that program.

Stellantis has earmarked $99 million for capital investments at an engine assembly plant and two aluminum diecasting plants as it plans production of a new hybrid-electric vehicle engine. The 1.6-liter, I-4 turbocharged unit with direct fuel injection is based on a current Stellantis engine in production in Europe. It will power two future HEV models for the North American market, according to Stellantis.

Engine production will begin in early 2025, the automaker reported.

Most of the capital, $83 million, is directed at Dundee (Mich.) Engine plant where the HEV engine will have its final assembly. That plant will have new tooling and handling system installed in preparation for the new product. Dundee Engine will continue to produce the 3.6-liter Pentastar Upgrade for the Jeep Grand Cherokee.

The Kokomo (Ind.) Casting Plant will cast the aluminum engine blocks for the new HEV engines, and will be targeted with $14 million in capital improvements to update the current high-pressure diecasting cells for the new products.

Kokomo Casting – which Stellantis noted is one the world’s largest aluminum diecasting operations – casts aluminum automotive components, transmission and transaxle cases, and engine blocks for various Chrysler and Jeep models.

Lastly, almost $2 million will be invested at the Etobicoke (Ont.) Casting plant where the new HEV engines’ oil pans will be cast, to convert the current diecasting machines and work cells for the new parts.