Chrysler Group To Open New Engine Plant

The past few years have seen Detroit's Big Three facing their toughest challenge yet. Due to the increasing demand for smaller and more fuel-efficient vehicles, Ford, General Motors and Chrysler have been struggling against their Asian rivals. The reduced sales output of these three car manufacturers have resulted to restructuring plans which involves the shutting down of plants and cutting down the number of employees.

For Chrysler, the consequence of their poor performance in the market is the severance of their ties with parent DaimlerChrysler AG. Before that though, the company has already closed down plants, reduced the number of shifts, and implemented workforce reduction.

Those steps are part of the company's efforts to bring back the whole team to profitability. Earlier this year, Chrysler announced that they will put into effect their "Powertrain Offensive". The said initiative is a $3 billion investment which is aimed to produce engines which will be able to compete with Asian-made engines in terms of fuel efficiency. Recently, the company hosted a groundbreaking ceremony for its new engine plant which will be built in Trenton, Michigan. The said assembly plant will be producing fuel-efficient V6 engines. Inside the company, these engines are called the Phoenix engines hence the name given to the new plant which is the Trenton Phoenix Engine Plant. The facility is only planned to produce engines and other parts such as Chrysler struts, shock absorbers, control arms, and other suspension system parts will be manufactured elsewhere.

Present during the groundbreaking ceremony is Michigan Governor Jennifer Granholm, Wayne County Executive Robert Ficano, Trenton Mayor Gerald Brown, and the UAW Vice President General Holiefield. Aside from these government officials, the ceremony was also attended by Chrysler executives. One of them is Chrysler's Executive Vice President for Manufacturing, Frank Ewasyshyn. Speaking during the ceremony, Ewasyshyn has this to say: "Today's groundbreaking ceremony commemorates an important growth milestone for Chrysler Group and for the City of Trenton. Constructing our new plant at this site also confirms the commitment of Chrysler Group to investing in the communities where we do business and supporting economic development throughout the State of Michigan. This new plant will enable us to develop products that are designed to meet changing consumer tastes for more fuel efficient vehicles."

Upon completion, the Phoenix engine facility is expected to produce 400,000 to 440,000 engines every year. These engines will be supplied to different Chrysler auto assembly facilities. The new engine plant is expected to provide at least 485 full-time employees when it becomes fully operational.