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In a terse statement issued last night, Chrysler made official what had been expected for at least a couple of weeks: The Global Engine Manufacturing Alliance is no more. Chrysler Group LLC has bought out its former partners Hyundai and Mitsubishi, and the Dundee, MI engine plant that builds Chrysler's four-cylinder engines for a variety of vehicles is now wholly owned by the company.

No buyout price was announced and the status of the engine designs was not mentioned. Presumably, the Japanese and Korean automakers which also build versions of the same engines will be allowed to continue doing so for the foreseeable future at their own manufacturing facilities. Mitsubishi uses a version of this engine in the latest versions of its Lancer, including the EVO. The Dundee plant began production in 2005.

[Source: Chrysler]

PRESS RELEASE:

Chrysler Group LLC Statement Regarding Status of the GEMA Alliance

Auburn Hills, Mich., Sep 10, 2009 - Effective August 31, 2009, Global Engine Manufacturing Alliance (GEMA) is now a wholly-owned subsidiary of Chrysler Group LLC. Former GEMA partners, Mitsubishi Motors Corporation and Hyundai Motor Company, have sold their interests in the manufacturing alliance to the Chrysler Group. Going forward, GEMA and its employees will continue to build state-of-the-art engines for Chrysler Group's line of exciting, fuel efficient vehicles.

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    • 1 Second Ago
  • 28 Comments
      • 5 Years Ago
      So, Chrysler will use Chinese Guangzhou Automobile based engine
      • 5 Years Ago
      According to the above link, Guangzhou Automobile has signed a deal to annually build up to 250,000 Fiat branded cars for the chinese market plus 300,000 engines (550,000 engines total?) using Fiat technology. Any additional engines would be used in Guangzhou Automobile branded cars in the Chinese market, I presume.

      Given this latest decision by Chrysler, Chrysler will obviously build engines using Fiat technology at the Dundee plant for use in Chrysler and Fiat vehicles assembled in North America. If Chrysler planned on importing engines from China, they wouldn't have acquired the Dundee factory.

      Guangzhou Automobile certainly won't have any involvement in the design of the engines. Instead I believe Fiat will confine that expertise to Italy.
      • 5 Years Ago
      Chrysler is doing just fine with Fiat. Some these comments are not for real or are they?
      It is no wonder this country has so many problems. Just read what these fools wrote with comments like these. It seems almost impossible people are really that dumb.
      • 5 Years Ago
      "The Lancer can't even break into the 30 mpg range with that piece of crap engine. Good for them. Let Chrysler have it."

      chrysler wants the plant, not the engines. Dundee doesn't build engines for Hyundai or Mitsubishi; those two are keeping the engine.
      • 5 Years Ago
      " Chrysler Group's line of exciting, fuel efficient vehicles "? Ha ha, good one! My morning laugh.

      So sick of delusional marketing types.
      • 5 Years Ago
      I think that's more a function of the car than the engine, as the mpg of that series varies wildly with what it is placed in.

      I think Chrysler just wants the facility and control over the process. That Hyundai based engine already feels long in the tooth.
      Kreator
      • 5 Years Ago
      You guys don't get it, engines produced from GEMA alliance are second class engines designed mainly by Hyundai intended to get royalties from Chrysler and Mitsubishi, and Hyundai doesn't source their engines from there, they source their engines in Korea which is superior, so Chrysler and Mitsubishi are getting second class treatment from Hyundai.
      • 5 Years Ago
      Goodbye and GOOD RIDDANCE! The Neon Iron Block engines were Better anyway...
      • 5 Years Ago
      Something many of you seem to be forgetting, Chrysler does have a very good version of this motor in the Caliber SRT-4. Now, regardless of whether you think of the CSRT-4 as a quick innovative pocket SUV, or an ugly beast, you can't argue that the motor is terrific. It produces 285 hp (213 kW) at 6,400 rpm, and 265 lb·ft (359 N·m) of torque at 5,600 rpm. This is wheel horsepower, by the way. Even with the open deck design, the engine has responded very well to modifications.

      Admittedly however, Daimler did a f'ing terrible job on their end of developing this engine to actually meet the needs of people during a time (especially summer 2008) where gas prices sky rocketed, focusing instead on terrible V6 engines that get horrible gas mileage while producing significantly lower horsepower than competitors.
        • 5 Years Ago
        Not to mention the HORRIBLE 2.7L V6 which will self Destruct if you are not almost Ritualistic about the oil Changes! THAT Horrible aluminum Log was a Bad Design since Day 1!
      • 5 Years Ago
      Well apparently the engine doesn't do so bad in Hyundai's configuration which is getting class leading mpg among Accord and Camry. I think the 2.4 in the upcoming 2010 Sonata is reportedly producing 200 hp non turbo!
        • 5 Years Ago
        195 bhp is what I have read about the 11 sonata 2.4 and your right the mpg is great in the sonata 2.4 ..I own a 2007 sonata with the 2,4 and get 28 to 31 mpg depending 0n my foot :) thats not bad for a car like the Hyundai sonata that is classified as a large size car which is bigger then Camry or accord
        • 5 Years Ago
        The Hyundai version will -these days- always out do the Chrysler/pure GEMA version, because Hyundai is fixated on constant improvement and change. That company has no interest in status quo and no reason to. Nearly every new thing they do is better than the last.

        Chrysler, on the other hand, wants to keep on building the same engines and the same cars for years if not decades at a time. Innovation? Change? Updates? Nah. Not until they have milked every last dime out of the old one. Chrysler built variations on the K-car plaform for nearly 15 years. GM has also done this to some extent. Ford is rapidly unlearning but they too spent much of the 80s and 90s building cars born in the 70s. They still build the Ranger which is 11 years old currently.

        But meanwhile Hyundai -who is fixated now on annihilating Toyota- refuses to stand still. Models that used to hold steady for four years are now changing in two years. The GEMA partnership sounded good on paper but the three corporate styles are totally different and that doomed the project. When you have some partners who want to update and change and some who want to snooze and refuse to invest in it, the partnership is going nowhere.
        • 5 Years Ago
        According to the EPA at fueleconomy.gov:

        2010 Ford Fusion 2.5 gets 23/34
        Chevy Malibu 2.4 gets 22/33
        Saturn Aura 2.4 gets 22/33
        Nissan Altima manual 2.5 gets 23/32
        Kia Optima 2.4 gets 22/32
        Hyundai Sonota 2.4 gets 22/32
        Honda Accord manual 2.4 gets 22/31
        Toyota Camry 2.4 gets 21/31
        Chysler Sebring 2.4 gets 21/30
        Dodge Avenger 2.4 gets 21/30
        Mitsubishi Galant 2.4 gets 20/27

        Hardly "Class leading" for Hyundai but much better than Chrysler/ Mitsubishi
      • 5 Years Ago
      Yeah, the basic engine design isn't the problem. Hyundai, which did the basic design, is getting great mileage and usually top-of-class power out of it. This is the same engine that's not only in the Sonata, but in the Forte. The problem is all the cost-cutting Chrysler did on things like NVH and fuel delivery systems on it. If Chrysler gets bad mileage from it, Mitsubishi mediocre mileage, and Hyundai class-leading, it's pretty safe the say the basic engine design isn't at fault.
      • 5 Years Ago
      Daimler really screwed the pooch.
      This deal sucked in every way.
      The engines did not deliver at all.
      Now, Chrysler is stuck with being 10 years behind in engine development, imo.
      Even Phoenix won't make this up.

      I hate the Germans all over again for this. (not to mention Pearl Harbor!)

      Tee to the Eye to the See!
        • 5 Years Ago
        On a random note...I just realized that Chrysler has now partnered with car companies from all the Axis powers now that they're owned by Fiat.
        lol
        • 5 Years Ago
        You guys that dense? Fiat is known for their advanced 4 cylinder engine technology- they are intending to build Fiat engines in Dundee. They want the facility- not the engines.
        • 5 Years Ago
        Hey Rick C., you have to excuse Jimbo he's a little slow on the uptake.
        • 5 Years Ago
        Yes, the Germans did bomb Pearl Harbor. Did any of you see the best comedy movie ever made? ANIMAL HOUSE.
        • 5 Years Ago
        "Was it over when the Germans bombed Pearl Harbor?" The genius that was John Belushi. RIP.
        • 5 Years Ago
        Umm Chrysler has been sharing engine technology with Mitsubishi years before the Germans came into play. Also just in case if you didn't know Mitsubishi is japanese and Hyundai is Korean.
        • 5 Years Ago
        And the Germans didn't bomb Pearl Harbor.
        • 5 Years Ago
        Fiat has nothing to do with the 'world' engine.
        Germans reigned when this deal was done.
        Yes, Mitsu is Jap, and Hyndai Korean. Doesn't change that the Germans were in charge.
        I know the Germans did not bomb Pearl Harbor and I also know (NOW) that you didn't view or pay attention to Animal House. (gotcha! - hence the TIC as my last statement) As an aside, my Dad upped (enlisted) the week after Pearl was bombed. And he was close enough for his ship to be heaved out of the water when we paid them back with an atomic bomb.

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