Chrysler Group LLC will invest $179 million for renovations to produce a new small engine for the Fiat 500 minicar at its engine plant in Dundee, Michigan, according to the Detroit Free Press. The company expects to create 155 new jobs with the new production line, which is scheduled to begin in the fourth quarter of 2010. It is Fiat's first investment in the United States since taking a 20 percent stake in Chrysler, and it raises Fiat's ownership to 25 percent. The Associated Press (AP) reports that Fiat CEO Sergio Marchionne was also looking at producing the fuel-efficient engine in Mexico, where the Fiat 500 will be built, and that the engine will eventually replace engines in other Chrysler vehicles. Last month, the state approved a $4.6 million, 10-year tax credit for Chrysler in exchange for the investment and job creation.
