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Stellantis to invest $83M in Dundee engine complex

·3 min read
A worker at the Dundee Engine Plant, provided by the Stellantis corporate website.
A worker at the Dundee Engine Plant, provided by the Stellantis corporate website.

Weeks after Stellantis bypassed Dundee as a site to build an electric vehicle battery plant, the auto giant announced it will invest $83 million in the village's engine complex.

The move is part of a $99 million investment in three plants in North America. But by far the largest bulk of that money is aimed at the Dundee Engine Complex where Stellantis is planning to retool the factory to build a new four-cylinder turbo engine for their hybrid electric vehicles.

“(The) $83 million investment from Stellantis at the Dundee Engine Complex is a win for our auto workers and will help us secure the future of hybrid and electric vehicle manufacturing right here in Michigan," said Michigan Gov. Gretchen Whitmer. "We appreciate our long-standing and continued partnership with Stellantis. Together, we will build on investments like today’s at the Dundee Engine Complex and the historic investment in 2019 to bring the first auto assembly plant to Detroit in 30 years."

Several weeks ago, Stellantis chose Kokomo, Indiana, to build a new, $2.5 billion electric vehicle battery factory. Stellantis, which owns Chrysler, Jeep, Dodge and other brands, owns the existing Dundee Engine Plant, which sits opposite of US-23 from Cabela’s sporting goods store.

“This is exciting news for the both the Dundee area and county of Monroe. This investment means that the Dundee Engine Plant will remain productive for a number of years as the industry transitions from internal combustion engines to electric vehicles,” Tim Lake, president and CEO of the Monroe County Business Development Corporation, said. “We appreciate Stellantis' faith in the Dundee community and its workforce.  We look forward to a continuing relationship with Stellantis as they grow their manufacturing operations.”

That site was considered a potential location for the new battery facility. However, due to various reasons, Stellantis moved ahead with Kokomo. But Tuesday's announcement that it will invest tens of millions in the Dundee plan assures that electric vehicle production will include Monroe County.

This four cylinder engine to be used in hybrid cars comes from their European brands, and is part of their transition Dare Future 2030 plan to becoming carbon neutral by 2038. Other auto manufacturers have made similar commitments.

Dundee is getting the lions share of the investment, with the rest going to two other Kokomo, Indiana, and Etobicocke, Toronto, Ontario. The engines will be cast in Indiana, and will use an oil pan made in Ontario. They will then be shipped to and assembled in Dundee, according to a press release.

"We will build on our auto industry leadership, creating jobs and ushering in a sustainable transportation future by leveraging our innovation and talent," Whitmer said in a statement. "Let's stay focused on growing our economy, building on our rich automotive legacy, and creating good-paying, high-skill jobs for Michiganders in every region of our state.”

The Dundee investment is part of a massive, wide-range shift by automakers toward production of electric vehicles and components.

This article originally appeared on The Monroe News: Stellantis to invest $83M in Dundee engine complex