In a move which further solidifies its place in Polish manufacturing, Fiat Chrysler Automobiles (FCA) have said that they will build two brand new gasoline engines in the country, further reaffirming its intentions to stay in Poland and invest heavily in the auto industry there.
Representatives of the Polish government have revealed FCA’s newest investment into the country could total nearly $300 million in relation to the new project, and create hundreds of new employment opportunities. The investments will be handled by FCA’s financial partner CITIC Tokyo International.
Chrysler was not available for further comment on details of the arrangement or specifics on the construction of the new engines at their Powertrain plant where it will make the products next year. They were also quick to point out that the new 3 and 4-cylinders will adhere to any E.U. guidelines on CO2 emissions.
“Our new engines will be very competitive in performance and characterized by lower emissions,” FCA said in a statement yesterday. “They will be extremely high torque compared to others in the same segment class.”
The Powertrain plant currently produces the Multijet turbo diesel engine among other gasoline models such as TwinAir.
Meanwhile, interested parties and analysts have been questioning whether FCA would expand operations that output the popular Fiat 500 hatchback and the Lancia Ypsilon model which are big sellers on the continent, although a recent decline in sales has meant below capacity performance at the plant for several years.
“Italian politicians got pretty irate regarding jobs a few years back and FCA moved production back to their home country,” says John Hastings, senior analyst at HSBC London. “I think it was as much about protecting their own jobs as those of the workers.”
As a result of the move, the company’s Tychy-based vehicle plant saw significant worker layoffs and the plant now produces a quarter of a million less cars per year than before.
