Global Engine Manufacturing Alliance Announces Second Plant

DUNDEE, Mich., Feb. 17, 2004 -- In the final analysis, it was two plants in one.

Global Engine Manufacturing Alliance (GEMA) President Bruce Coventry and Michigan Governor Jennifer Granholm today announced a second engine plant to be connected to the existing GEMA plant in Dundee, Michigan, operated under a joint venture between DaimlerChrysler, Hyundai Motor Company and Mitsubishi Motors Corporation.

The new facility on the 270-acre site will double the capacity of the overall operation, which will produce a new family of fuel- and emissions- efficient aluminum four-cylinder engines. GEMA is investing $323 million in the 450,000-square-foot addition, which is expected to add 250 new GEMA jobs (with up to another 50 first-tier supplier positions) to the overall operation.

"Our volume requirements have grown significantly since we began planning the first plant in Dundee," said Coventry.

The initial search process for a second NAFTA plant location eventually narrowed to seven "finalist" sites among several states. Dundee was chosen because of a solid business case developed with assistance from the state, as well as regional offices and the Village of Dundee. "All the locations had attractive elements," said Coventry. "But when all was said and done, we had everything we needed right here -- including a number of great partnerships with the state, and with the Village."

"Global Engine Alliance has chosen Dundee, and Michigan, not once, but twice," said Gov. Granholm. "This project is proof that Michigan remains competitive in the challenging global fight to keep manufacturing investment and jobs."

Coventry said the site will allow GEMA to leverage its resources more effectively, under one roof. "The objective is to compete with anybody, anywhere, and we can take advantage of incredible advantages from the standpoint of economies of scale, sourcing and investment. So, we've designed this facility on an entirely different model -- we'll have state-of-the-art production equipment and technology, innovative new processes, and the right people to make it all work."

A process is now underway to screen and hire GEMA employees. Bruce Baumbach, GEMA Dundee plant manager, said, "Education and training is a top priority for our work force. Our training is being coordinated through partnerships with Monroe County Community College, Michigan Economic Development Corporation and Southeastern Michigan Community Alliance -- and we're very pleased to work with them in developing what I know will be a world-class group of employees."

GEMA was created as a joint venture between DaimlerChrysler, Hyundai Motor Company and Mitsubishi Motors Corporation to produce a new family of four- cylinder engines, known as "World Engine," in North America. North American production is scheduled to begin in 2005, with the second plant to begin operations in 2006.

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