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Fiat's Multiair engine will start production at the Chrysler Group's Michigan factory in the fourth quarter of 2010. An amount of US$179 million will be spent by Chrysler in preparing the Dundee facility, thus creating 155 new jobs and a total of 573 for the entire project. The plant will have an annual capacity of 100,000 engines to be fitted into Mexican-built Fiat 500 units. After receiving their engines half the 500s will stay in the Latin America market while the rest go to selected Chrysler showrooms in the US.

The Fully Integrated Robotised Engine (FIRE) is a 1.4-litre naturally aspirated motor making a basic 75kW (102hp) at 6,750rpm and 129Nm (95 lb-ft) at 4,250rpm. A turbocharged version will appear later with about 129kW (175hp). Fiat says Multiair technology helps deliver up to 10 percent more power and 10 percent less fuel consumption compared to similar competitive engines.

Michigan Governor Jennifer Granholm was at the announcement made by Chrysler CEO Sergio Marchionne. She said: "This is Fiat's first investment in Michigan. Michigan is ready to be your partner on any future investment."


Gallery: Chrysler to Build Fiat 1.4L Multiair Engine in Michigan

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