Stellantis said it's investing $99 million (all figures in USD) at three plants to produce a new 1.4-litre turbocharged engine that has "flexibility for hybrid-electric vehicle applications."
The automaker is making the investments at its Dundee Engine Complex in Michigan, Kokomo Casting Plant in Indiana and Etobicoke Casting Plant, in Toronto.
The company said Monday that the next-generation I-4 tigershark engine will power two future hybrid models in North America and will be the first hybrid engine for the company in the region. Production is expected to begin in early 2025.
Stellantis is putting $83 million into the Dundee Engine Complex, which will be retooled and function as the final assembly location for the new engine. The company said the Dundee plant will continue production of the 3.6-litre Pentastar Upgrade engine for the Jeep Grand Cherokee and Jeep Grand Cherokee L. Production for the current tigershark engine at the plant, which is a 2.4-litre design, will end in the first quarter of 2023.
The engine blocks will be cast at the Kokomo plant, where more than $14 million will be invested to convert existing die-cast machines and cells for the new engine.
Etobicoke Casting will produce the oil pan for the new engine. Stellantis is investing nearly $2 million into the facility to support the development and installation of new tooling and equipment upgrades.
Stellantis said the investments support its Dare Forward 2030 strategic plan of delivering innovative, clean, safe and affordable mobility solutions.
They are the latest in a series of moves Stellantis has made recently as it begins to build more eco-friendly models and churn out EV batteries at several sites.
The company announced in October that it's funneling $229 million to retool three Indiana plants to build its new flexible eight-speed transmission that can be used in both electrified vehicles and those with conventional setups.
In June, Stellantis said its Windsor Assembly Plant in Ontario will produce vehicles on the automaker's new STLA Large platform that will support electric vehicles. Retooling is expected to begin there in 2023.
The company said it's retooling and modernizing the Brampton Assembly Plant, which builds the Chrysler 300 and Dodge's muscle cars, beginning in 2024. When production resumes in 2025, Stellantis said the plant will introduce an all-new, flexible architecture to support the company's electrification plans.
The UAW commended the investments.
UAW Vice President and Director of the Stellantis Department Cindy Estrada said: "This investment in a new four-cylinder engine will add job security for the members who continue to build ICE products as the industry transitions to electrification."