DETROIT - A second engine factory will be added to Global Engine Manufacturing Alliance's plant in Dundee, Mich., company officials said last week.
Global Engine, a joint venture among DaimlerChrysler AG, Hyundai Motor Co. and Mitsubishi Motors Corp., will invest $323 million in the expansion.
The plant is important because Global Engine and the UAW have agreed tentatively to an innovative labor pact for plant workers. Work rules would overturn decades of union practices that have hampered the Big 3's efforts to match foreign rivals' manufacturing efficiency.
The 450,000-square-foot addition will double capacity in Dundee to about 860,000 engines a year, says Chrysler group spokesman Daniel Bodene.
Global Engine will build a family of fuel-efficient and low-emission aluminum four-cylinder engines in Dundee.
The engines will be installed in the next-generation Chrysler Sebring, Dodge Stratus, Dodge Neon, Mitsubishi Galant, Eclipse coupe and Eclipse Spyder convertible.
The second plant is expected to add 250 jobs at the joint venture.
As many as 50 additional Tier 1 supplier positions also will be created by 2009.
The first Dundee plant is scheduled to begin production next year. The second will open in 2006.
The state of Michigan awarded Global Engine Manufacturing Alliance single business tax credits worth about $21.6 million, in addition to $400,000 in job training grants.
The proposed labor agreement would, among other things, allow Global Engine to subcontract janitorial work and post a list of no-show employees to combat absenteeism. Employees will dress like those at Japanese transplant companies. Skilled workers will work in one job classification and handle various tasks.
Also, suppliers will deliver parts to the assembly line.