Chrysler Group's Trenton, Michigan Engine Plant to Get $297 Million Investment, New Products

* New engine lines will power future Chrysler Group vehicles * Facilities upgrades improve workplace environment * Support from UAW, City of Trenton

AUBURN HILLS, Mich., May 16 -- Chrysler Group announced today the investment of nearly $300 million into engine programs at its Trenton (Mich.) Engine Plant (TEP). The investment will support the production of a new 4.0-liter V6 engine and the redesigned 3.8-liter V6 engine next year. The engines will be used in future Chrysler Group vehicles.

"This plant is going through major changes that will contribute to Chrysler Group's future success," said Robert Varsanik, Plant Manager. "The company has made this investment in our employees and facilities to ensure that we will be competitive in the global marketplace."

"The support of local UAW leadership was critical to securing this important investment commitment," said Nate Gooden, UAW Vice President and member of the DaimlerChrysler AG Supervisory Board. "This investment will help to maintain the plant's viability, benefiting employees, the company and the community."

The company will invest $155 million to build the new 4.0L engine line, and $142 million to completely upgrade the plant's 3.8L engine line. As part of a company-wide strategy, extensive asset reutilization led to multi-million dollar cost savings on the 4.0L line.

Both engine lines will benefit from new tooling, equipment, and quality control systems. For example, 100 percent of engines coming off the line will be tested for noise, vibration and harshness and verification of oil circuits by new state-of-the art cold-test stations. New, advanced hot-test stations will also be added.

Workstations will be redesigned and all-new Material Handling processes are being put into place to better support production line operators. These changes, along with ergonomic and work place environment improvements for employees, will also contribute to improved engine quality and productivity.

Employees will also benefit from extensive training in preparation for the launch of the new engines. Further, in cooperation with the United Auto Workers, TEP is adopting new workplace practices that are designed to foster greater creativity and innovation on the plant floor. These elements will help provide a better, safer work environment and further support assembly line operators.

The Trenton Engine Plant has enjoyed a good relationship with the City of Trenton, which also supported the investment.

The 2.1 million square-foot Trenton Engine Plant has approximately 1600 employees represented by UAW Locals 372, 889, and 412.