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Stellantis Investing in a New 1.6-Liter Turbo Engine for US Hybrids

It'll be Stellantis' first hybrid engine produced in this region.

A worker builds a 2.4-liter Tigershark I4 at the Stellantis engine facility in Indiana

Building a new engine, even if it's a derivative of an older one, takes a village -- or, rather, it takes a boatload of money and several facilities' worth of human effort. That's why Stellantis is making a big investment in three of its plants in North America this year.

Stellantis on Monday announced that it will invest $99 million across three of its North American facilities to produce a new four-cylinder turbocharged engine. This 1.6-liter I4 will be used for two future hybrid vehicles in this market, although the automaker did not specify what those cars would be. Stellantis did say that it would be the first hybrid engine built in this region, with production expected to start in early 2025, and this engine has its roots in a similar Stellantis engine currently in production in Europe.

Of that $99 million investment, the lion's share -- some $83 million -- will go into the Dundee Engine plant in Michigan. That's where the 1.6-liter will be assembled. It appears this new four-pot will slot into the hole left by the outgoing Tigershark 2.4-liter I4, which sees the end of its production run in early 2023. This plant also builds the 3.6-liter V6 for the Jeep Grand Cherokee and Grand Cherokee L.

The remaining investment money will be split between the US and Canada. $14 million will go to the casting plant in Kokomo, Indiana, where Stellantis will cast the 1.6-liter's engine block. The remaining $2 million will go to the Etobicoke Casting facility in Toronto, Ontario, which is where the engine's oil pan will be produced.

Hybrids are just one part of Stellantis' current electrification plans. The US will also see the Alfa Romeo Tonale plug-in hybrid arrive for the 2023 model year, and it will spawn a fraternal twin, the Dodge Hornet. There's also a small battery-electric Jeep headed our way next year. Further down the road, we'll be privy to new generations of the Dodge Challenger and Charger, which will be fully electric, as well.