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Stellantis to Invest $99M in New Engine Production

Stellantis' casting plant in Etobicoke, Ontario | Photo: Stellantis
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Derek Boshouwers
Three facilities will benefit from the cash inflow, including the Etobicoke plant in Ontario

Stellantis is pouring $99 million USD into the production end of its plan to add a new 4-cylinder turbocharged engine to its arsenal for North America. The company announced the investment today, and specified just where the money will go: to the Dundee Engine (Michigan), Kokomo Casting (Indiana) and Etobicoke Casting (Ontario) plants.

The new engine is a 1.6L, I-4 turbocharged unit with direct fuel injection, and it will be available for use in hybrid-electric vehicle (HEV) vehicle powertrains. Based on a Stellantis engine already in use in Europe, this next-generation engine will power two future North American HEV models; in fact, this will be the first HEV engine for the company on our continent. Production is expected to begin in early 2025.

The new investments support Stellantis’ Dare Forward 2030 strategic plan of delivering clean, safe and affordable mobility solutions, the company explained.

Here’s how the money will be divvied up between the three facilities: the Dundee Engine facility will receive a large majority of it, some $83 million, so that it can be retooled and become the final assembly plant for the complete engine. Engine blocks will be cast at the Kokomo Casting Plant, which will receive $14 million for conversion of its existing die cast machines and cells to ready it for the new engine.

Finally, The Etobicoke Casting plant in Ontario will get $2 million and the mandate to produce the oil pan for the new engine. It will benefit from development and installation of new tooling and equipment upgrades to allow it to fulfill that mandate.

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Derek Boshouwers
Derek Boshouwers
Automotive expert
  • Over 5 years' experience as an automotive journalist
  • More than 50 test drives in the past year
  • Participation in over 30 new vehicle launches in the presence of the brand's technical specialists