Chrysler Group said that they are considering investing almost $200 million into their Mack I Engine Plant in Detroit in order to boost the production of the V-6 Pentastar engine. Chrysler is working with the State of Michigan and City of Detroit on an incentive package before committing.
Chrysler said that the investment could create around 250 new manufacturing jobs. Chrysler is planning to idle the Mack II Engine Plant in September when they stop producing the 3.7-liter V-6 engine. About 200 employees in the plant will be laid off, but they will be redeployed at other Chrysler plants in the area.
Chrysler bought the 1.4-million square foot Mack I Engine Plant in 1953 and started producing engines there in 1998. If the plant gets approved, it would be Chrysler’s third engine plant to build Pentastar engines. The other Chrysler plants are in Trenton, Michigan and Saltillo, Mexico.
Chrysler spokeswoman Jodi Tinson said that they hope to reach an agreement with state and local officials. The Mack I would stop producing the 4.7-liter V-8 engines and start producing the Pentastar V-6 models by the end of 2013.
All Pentastar engines have displacements of 3.6 liters, but Chrysler’s product plan indicates that they are considering other displacement sizes.