FCA's Bielska Biala, Poland, plant will begin producing two new engines in the coming year.
Fiat Chrysler Automobiles will build two new gasoline engines at its plant in Bielsko-Biala, Poland, in an investment it said was confirmation of its commitment to developing its operations in the country.
It is third time this fall Poland has been designated as the recipient of a major investment by a global automaker. Daimler AG said in October it will new engine plant in Jawor, Poland, signing the property purchase agreement for the site with its Polish partners. Toyota also has announced it plans to spend $165 million for a new factory to build gearboxes for hybrid vehicles.
Polish Deputy Prime Minister Mateusz Morawiecki told Polish news agency PAP that FCA could invest up to $265 million in the project and create several hundred new jobs.
FCA confirmed it will start making the 3-cylinder, 1.0-liter engine and a 4-cylinder 1.3-liter one in 2018, but declined to confirm the scope of the investment in the project or the number of jobs it will create.
“These small but powerful units are characterized by the highest torque in their respective segments, low fuel consumption and lower carbon dioxide emissions,” FCA said, adding they would comply with existing and future EU emissions standards.
The plant currently makes the 1.3-liter Multijet turbo diesel engine and the 2-cylinder gasoline engine TwinAir.
Alfa Romeo debuted its first-ever sport-utility vehicle, the Stelvio, at the Los Angeles Auto Show.
(Daimler building engine plant in Poland. Click Here for the story.)
FCA also remained silent about whether it could also add new models to its Tychy-based vehicle plant that produces the Fiat 500 hatchback and the Lancia Ypsilon model – it has been running below capacity for years.
The facility used to be FCA’s best-performing plant in Europe, but was sidelined when it moved production of the Panda to Italy in 2011 to appease politicians eager to protect jobs.
The move led to hundreds of Tychy workers being laid off and the plant now makes around 260,000 vehicles a year, less than half its peak production level in 2009.
FCA Chief Executive Sergio Marchionne has repeatedly said the Polish plant was a “safe asset,” although he is giving priority to boosting output at underutilized plants in Italy.
(Click Here for details about Toyota building hybrid transmissions in Poland.)
Meanwhile, however, FCA’s new emphasis on sport-utility vehicles will be felt in Italy where the automaker could add as many as 2,000 new jobs at its Alfa Romeo Cassino plant in Italy by 2018, Prime Minister Matteo Renzi said during a visit to the plant.
Speaking at a conference at the factory, Renzi said there were 4,300 workers at Cassino at present, but added that the number would rise to up to 6,300 during the next 18 to 24 months.
The Cassino plant is the home of two new Alfa Romeo models, the Guilia sedan and Stelvio sport-utility vehicle, which made its global debut at the Los Angeles Auto Show earlier this month.
Featured in the all-new 2018 Stelvio and Stelvio Ti models is an all-aluminum 2.0-liter direct-injection, 16-valve, turbocharged and intercooled engine, designed specifically for Alfa Romeo. It delivers a best-in-class 280 horsepower, along with world-class levels of performance, efficiency and refinement.
(To see more about Alfa Romeo’s entry into the SUV market with the Stelvio, Click Here.)
Crafted at the Cassino plant in Italy, the Stelvio is expected to become brand’s top-selling model as FCA pushes to expand the Alfa Romeo’s presence not only in Europe, but also North America and Asia, particularly China.