Chrysler Group announced it will invest nearly $240m to increase engine capacity and add about 1,250 new jobs at several Michigan facilities, reaffirming the company’s commitment to growing its operations in southeast Michigan.

Chairman and CEO Sergio Marchionne confirmed that the company would make investments and add jobs at the following local plants:

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Mack I Engine Plant: $198m to produce the award-winning Pentastar (V6) engine 

Mack I Engine Plant: adding up to 250 new jobs at Mack I, subject to market conditions

Trenton North Engine Plant: investing an additional $40m to add a flexible production line that can run both the Pentastar engine and the Tigershark (I4) engine

Warren Truck Assembly Plant: adding 1,000 new jobs on a third crew in March 2013 to produce the 2013 Ram 1500

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With this announcement, Chrysler Group’s investments in its US facilities increase to nearly $4.75bn since June 2009. In the same time frame, the company has added nearly 6,000 hourly jobs.

Mack I, which currently builds the 4.7-litre V8 for the Ram 1500, will begin producing Pentastar engines in early 2014. When the 4.7-litre engine phases out in the first quarter of 2013, Mack I will begin producing crankshafts that will be shipped to the Trenton Engine Plant to supplement its machining capacity, followed by production of cylinder heads and cylinder blocks. Once the plant reaches full capacity, the plant will add up to 250 new jobs, subject to market conditions.

The $40m investment at Trenton North for installation of a flexible production line will give the company the ability to adjust capacity of either the Pentastar or the Tigershark engine, currently built at the Dundee Engine Plant, to meet market demand. This investment is in addition to the $114m investment and creation of 268 new jobs previously announced in June to repurpose about one-fifth, or nearly 400,000 sq ft, of Trenton North for production of core components for the Pentastar engine produced at its sister plant, Trenton South.

Warren Truck began production of the 2013 Ram 1500 in September. It will become the third facility in the last year to add a third crew, joining the Belvidere, Illinois, and Jefferson North (Detroit) Assembly Plants. The Windsor Assembly Plant in Ontario, Canada, has been running three shifts since 1993.