Chrysler Group Dedicates Kenosha Plant Expansion and Celebrates Production of New 3.5-Liter V6 Engine

KENOSHA, Wis., July 25 Today, the Chrysler Group dedicated a new 500,000 square-foot expansion of its Kenosha Engine Plant with the launch of the 3.5-liter V6 engine that will power the all-new Chrysler Pacifica, which begins production in early 2003. The proven 3.5-liter SOHC 24-valve V6 engine will offer brisk performance and improved fuel economy.

The 3.5-liter production launch marks the completion of the plant's $624 million modernization and expansion program that began in 1999, and coincides with the city of Kenosha's Automotive Centennial celebration.

Tom LaSorda, Chrysler Group Executive Vice President of Manufacturing, said, "The expansion would literally not have been possible without the support and dedication of the Kenosha workforce and UAW leaders, both at the local and national levels."

Union Partnership

Chrysler Group plants traditionally use outside vendors for installation of new machinery to create production areas. At Kenosha Engine, a unique pilot team was created in an effort to eliminate problems up-front and increase efficiencies. Approximately 30 people from Kenosha's hourly workforce collaborated with corporate engineers, advanced manufacturing teams and suppliers to provide recommendations on the equipment and implementation procedures. Some 100 skilled employees were involved in the equipment floor installation, testing of machinery and training initiatives associated with the new engine.

"Plant employees from all levels were encouraged to critique current and future processes for continuous improvement," said UAW Local 72 President, John Drew. "The joint initiative between union and management is vital to the success of the Kenosha Engine Plant in today's competitive environment."

3.5-liter and Chrysler Pacifica

The design and functionality of the new 3.5-liter engine was derived from the Chrysler 300M, Chrysler Concorde and Dodge Intrepid engine. An all-new dual-intake manifold provides an upgrade to the Kenosha-built engine. The plant currently produces the 4.0-liter I-6 rear-wheel drive and 2.7-liter V6 front-wheel drive engines for use in the Chrysler Concorde and Sebring, Dodge Stratus and Intrepid and Jeep® Grand Cherokee and Wrangler.

With Pacifica, Chrysler is taking yet another concept vehicle to reality. The production version of the all-new 2004 Chrysler Pacifica sports-tourer was introduced earlier this year at the New York International Auto Show. Production of the 2004 Chrysler Pacifica will begin in early 2003 at Chrysler Group's Windsor Assembly Plant, (Windsor, Ontario, Canada). Pacifica will be built on its own, unique platform, but will use existing corporate components, including the 3.5-liter V6 engine.

Commitment to Powertrain

Above and beyond Chrysler Group's $624 million investment in the all-new facility, the company has recently announced its commitment to quality with a new seven-year/70,000-mile fully transferable powertrain warranty on all new 2002 and 2003 Chrysler, Jeep and Dodge vehicles sold on or after July 9. The Chrysler Group has invested a total of more than $7.5 billion in new, state- of-the-art powertrains since 2000 in an effort to improve its competitiveness and benefit the customer. This includes a new line of multi-valve passenger car engines, as well as a new family of SUV and truck engines -- the 3.7-liter V6, 4.7-liter V8 and class-leading 5.7-liter HEMI® Magnum engine, to debut this fall on the all-new 2003 Dodge Ram Heavy Duty pickup truck.

At full production, Kenosha Engine will employ more than 1,700 team members and has the capacity to produce 780,000 engines annually on a two- shift operation. The 1.8 million square-foot facility currently employs 1,675 workers, who produce more than 2,000 units per day. Since 1997, Chrysler Group has invested $1.2 billion in the Kenosha facility, including today's announcement.

The dedication ceremony coincided with the city of Kenosha's automotive centennial celebration. The current Kenosha Engine production site opened in 1917, housing Nash Motors, Nash-Kelvinator, American Motors, Chrysler Corporation and, now, Chrysler Group. The facility has produced everything from Nash Ramblers, Chrysler Fifth Avenue and Dodge Diplomats to the 2.5- liter, 2.7-liter and 4.0-liter engines for more than two decades of Jeep and Chrysler nameplates. As a result of continuous improvement, teamwork and commitment, LaSorda said, "The auto factory town will continue to benefit from the Kenosha production site for years to come."

LaSorda was joined by Wisconsin Governor Scott McCallum, Kenosha Engine Plant Manager, Bob Hollingsworth, Kenosha Engine employees and other company, union and community leaders at the Job One event.