Chrysler told employees today at its Mack Avenue complex that it is considering a plan to invest $198 million at its Mack Avenue Engine I plant in Detroit to build its Pentastar engine.
The investment would create 250 new jobs.
"Chrysler Group will be working with the city of Detroit and the state of Michigan regarding potential economic development incentives to assist us in making the business case for the investment," the company said in a statement.
Mack Avenue Engine I, located at 4000 St. Jean Ave. in Detroit, was purchased by Chrysler in 1953. Chrysler makes a 4.7-liter V8 engines for the Ram 1500 at the 1.4-million-square-foot plant.
News of the possible investment comes two weeks after Chrysler informed the state of Michigan that it will idle its adjacent Mack Avenue Engine II plant on Sept. 9, and lay off about 200 workers there.
The employees who work at Mack Avenue Engine II will have an opportunity to be considered for the new positions at Mack Avenue Engine I, along with openings at other Chrysler plants in the area.
Chrysler makes 3.7-liter V6 engines at Mack Avenue II for the Jeep Liberty and Ram 1500. That engine is being discontinued and replaced by its 3.6-liter Pentastar V6.
The Pentastar engine is a flexible platform for Chrysler that offers more power and better fuel efficiency than previous V6 engines.
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