Chrysler Group LLC to Invest $114 Million in Trenton, Mich., Facility

AUBURN HILLS, Mich., June 15, 2011 /PRNewswire/ --

• Investment estimated to create 268 new positions
• Closed facility gets new lease on life
• Investment will support increased demand at the Trenton South Engine Plant
• Brings total Chrysler Group investments to nearly $3.2 billion since June 2009

Chrysler Group LLC today announced that it would invest $114 million in new equipment at its Trenton Engine Complex to support increased production of the Pentastar engine. The investment is estimated to create 268 new jobs.

The investment will be used to repurpose about one-fifth or nearly 400,000-square feet of the Trenton North Engine Plant, which ceased operations in May 2011, for the production of core components for the Pentastar engine produced at its sister plant, Trenton South.

Trenton South launched the new Pentastar engine in March 2010, which is now available in 10 Chrysler Group vehicles including the Jeep® Grand Cherokee, Dodge Avenger, Dodge Grand Caravan, Dodge Journey, Dodge Charger, Dodge Challenger, Dodge Durango, Chrysler 200, Chrysler 200 Convertible and Chrysler Town & Country. The Pentastar engine was recently recognized by Ward's Automotive as one of the "Ten Best" for 2010.

"As Chrysler Group moves to replace seven V-6 engines with the new Pentastar V-6, it has become necessary to add capacity on core components in order to meet the production demands of this new engine," said Brian Harlow, Vice President and Head of Powertrain Manufacturing. "This investment has also given Trenton North, which has been building engines for nearly 60 years, a new lease on life."

"We want to thank the City of Trenton for approving our tax abatement request and their continued support," said Harlow.

"On Monday, June 13, the Trenton City Council and I approved Chrysler Group LLC's Industrial Facilities Exemption for a $114 million manufacturing project in its North Plant," said Trenton Mayor Gerald Brown. "My administration worked very hard to come to an agreement that will provide the City with long term stability at the site, additional jobs and tax base improvements while further enhancing the relationship that Trenton and Chrysler have enjoyed since the 1950s. Trenton truly is Chrysler Town and we are proud of it."

Since June 2009, Chrysler Group has invested nearly $3.2 billion in its U.S. facilities and has made significant progress toward building a successful enterprise, including:

• reporting a net profit of $116 million in the first quarter of 2011;
• reporting the 14th-consecutive month of year-over-year sales gains in May;
• investing nearly $1.3 billion into the Company's existing transmission manufacturing facilities in Kokomo, Ind., to accommodate production of a new advanced front-wheel drive automatic transmission; increase capacity and support production of the World Engine and improve processes for the 62TE transmission program; and accommodate future production of a new highly fuel-efficient eight-speed automatic transmission;
• announcing a $600 million investment in its Belvidere Assembly Plant;
• confirming an investment of $850 million in its Sterling Heights Assembly Plant and surrounding stamping facilities;
• planning an investment of $150 million in its GEMA (Dundee, Mich.) facility;
• announcing an investment of $27.2 million USD in its Etobicoke Casting Plant (Toronto) to produce front and rear crossmembers for future Chrysler vehicles starting in the third quarter 2011;
• announcing in December 2009 that it will invest $179 million to launch production of the 1.4-liter, 16-valve Fully Integrated Robotized Engine (FIRE) at the company's Global Engine Manufacturing Alliance (GEMA) plant in Dundee, Mich., creating more than 150 new Chrysler jobs;
• adding a second shift of production – or nearly 1,100 jobs – at its Jefferson North Assembly Plant;
• announcing that it would add nearly 900 jobs on a second shift at its Sterling Heights Assembly Plant in the first quarter of 2011;
• launching the all-new 2011 Jeep Grand Cherokee in May 2010;
• beginning production of the all-new Fiat 500 in December 2010;
• launching production of the all-new 2011 Dodge Durango, Chrysler 200 and Dodge Avenger in December 2010, and the 2011 Chrysler 300, Dodge Charger and Dodge Challenger in January.

About Chrysler Group LLC

Chrysler Group LLC, formed in 2009 from a global strategic alliance with Fiat S.p.A., produces Chrysler, Jeep, Dodge, Ram, Mopar, SRT and Fiat vehicles and products. With the resources, technology and worldwide distribution network required to compete on a global scale, the alliance builds on Chrysler Group's culture of innovation, first established by Walter P. Chrysler in 1925, and Fiat's complementary technology that dates back to its founding in 1899.

Headquartered in Auburn Hills, Mich., Chrysler Group's product lineup features some of the world's most recognizable vehicles, including the Chrysler 300, Jeep Wrangler, Dodge Challenger and Ram 1500. Fiat contributes world-class technology, platforms and powertrains for small- and medium-size cars, allowing Chrysler Group to offer an expanded product line including environmentally friendly vehicles.

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SOURCE Chrysler Group LLC