Fiat Chrysler Automobiles (FCA) will manufacture 2 new fuel engines at its plant located in Bielsko-Biala, southern Poland in an investment it said was confirmation of its commitment to establishing its operations in the country.
Polish Deputy Prime Minister Mateusz Morawiecki informed the PAP news agency that FCA could invest up to 250 million euros ($265 million) in the task and develop a few hundreds of new jobs.
FCA refused to discuss the variety of tasks and provided no figures for the financial investment in the FCA Powertrain plant, where it will begin making the 3-cylinder 1 liter engine and a 4-cylinder 1.3 liter one in 2018.
“These small however powerful units are identified by the highest torque in their particular segments, low fuel consumption and lower CO2 emissions,” FCA stated, including they would adhere to existing and future EU emissions requirements.
The plant presently makes the 1.3 Multijet turbo diesel motor and the 2-cylinder gasoline engine TwinAir.
While political leaders and unions welcomed the investment, questions remain if the automaker will likewise include brand-new models to its Tychy-based car plant, which produces the popular Fiat 500 hatchback and the Lancia Ypsilon design, but has been running below capacity for many years.
The facility utilized to be FCA’s best performing plant in Europe, however was sidelined when it moved production of the Panda to Italy in 2011 to appease politicians eager to safeguard jobs.
The move resulted in hundreds of Tychy employees being laid off and the plant now creates around 260,000 vehicles a year, less than half its peak in 2009.
FCA President Sergio Marchionne has repeatedly said the Polish plant was a “safe asset”, although he is giving priority to enhancing output at underutilized plants in Italy.