Stellantis investing $83M in Michigan for hybrid electric vehicle engine production

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LANSING, MI – Stellantis is investing $99 million in three North American plants to produce a new four-cylinder turbo engine for its hybrid electric vehicles.

Michigan will be getting the bulk of the investment.

About $83 million will go toward retooling the FCA Dundee Engine Complex in southeast Michigan. The remaining $16 million will be invested at the Kokomo Casting Plant in Indiana and the Etobicoke Casting Plant in Toronto.

The Monday, Aug. 2 announcement came after Michigan lost out on a $2.5 billion investment from Stellantis, Chrysler’s parent company. The automaker received a $186.5 million incentive to build an electric vehicle battery factory in Indiana.

Related: Michigan loses Stellantis project to Indiana. The state must “raise the level of our game.”

“Today’s $83 million investment from Stellantis at the Dundee Engine Complex is a win for our auto workers and will help us secure the future of hybrid and electric vehicle manufacturing right here in Michigan,” Gov. Gretchen Whitmer said in a statement.

The new turbocharged engine will power two future Stellantis hybrid electric vehicle models. It will be the first hybrid electric engine for the company in North America.

Production is expected to begin in early 2025, according to Stellantis.

The 1.3-million-square-foot Michigan plant will continue production of engine parts for Jeep Grand Cherokee models until the first quarter of 2023.

Whitmer celebrated the Stellantis investment by highlighting other recent electric vehicle projects in Michigan.

Ford is investing $2 billion in plants across Michigan to support electric vehicle manufacturing. General Motors plans to invest $7 billion, supported by $824.1 million in state incentives, to convert an Orion Township assembly plant and build a battery cell plant in Lansing. And Gentex last week announced a $300 million investment in a Zeeland auto electronics plant.

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