Global Alliance Streamlines Engine Assembly
Chrysler Group, Hyundai Motor Co. and Mitsubishi Motors have decided to team up on four-cylinder engine design and manufacture to gain a competitive advantage in the global marketplace.
This past week, the three automakers' Global Engine Manufacturing Alliance (GEMA) began production at a brand-new plant in Dundee, MI, the group's second facility in the state. According to Chrysler, the effort represents "a whole new business model for engine development, one that leverages the combined capabilities of its partners and economies of scale in order to generate breakthrough improvement."
Ultimately, GEMA will produce an entire family of 1.8-liter, 2.0-liter and 2.4-liter engines at five separate plants, at a rate of 1.8 million units per year. The next three plants will be located in Asan and Hwasung, South Korea, and Shiga, Japan.
According to the terms of the partnership, Hyundai is in charge of basic engine design, with Chrysler Group and Mitsubishi playing supporting roles. For example, Chrysler Group is in charge of creating state-of-the-art intake manifold control valves, as well as implementing sound-control and antivibration features. All three partners are sharing best practices in everything from quality control and supply chain efficiency to final assembly.
"This project will allow DaimlerChrysler to realize annual savings of $100 million and attain a leading position in the market," says GEMA President, Bruce Coventry. "The Global Engine Manufacturing Alliance enables us to fully benefit from our strategic partnerships and achieve maximum economies of scale."
For more on the partnership, visit www.gemaengine.com.