Mitsubishi Motors To Invest Y10 Billion In Plant For New Engine

TOKYO October 3, 2003; Dow Jones reported that Mitsubishi Motors Corp. said it will initially invest more than Y10 billion to build a domestic production line for a new series of car engines jointly developed by DaimlerChrysler AG and Hyundai Motor Co. .

The Japanese automaker, in which the DaimlerChrysler group holds a 37% stake, plans to begin producing the engines at its Shiga factory in western Japan from spring 2005.

It is not clear yet how much the total investment for the new production line will be, a Mitsubishi spokesman said.

Mitsubishi plans to introduce cars powered by the new engine to the domestic market in 2005.

In May 2002, the three carmakers announced the "World Engine" project to jointly design, develop and engineer a family of four-cylinder engines with displacements of 1.8, 2.0 and 2.4 liters.

In February the group picked Dundee, Michigan, as the U.S. site for production of the new engine. Output at that facility is also scheduled to commence in 2005.

Details on production of the engines by Hyundai haven't yet been set.

When production by the three comes on stream, total annual worldwide production of this engine family is estimated to reach 1.5 million units, Mitsubishi said.

Of that volume, DaimlerChrysler will shoulder 40%, while Mitsubishi and Hyundai will each make 30%.