Dundee, Mich., Dec 16, 2004 - Construction of the Global Engine Manufacturing Alliance (GEMA) World Engine plants in Dundee, Mich., is ahead of schedule, and preliminary work has already begun to bring the first of two GEMA plants online.

With nearly all of its block, head and assembly line machines installed, the first of the two mirror-image, 450,000-square-foot plants is currently conducting validation testing of the machines and processes that will be employed when full-volume production is launched in September 2005. The second plant's scheduled launch follows the first by 12 months.

The Global Engine Manufacturing Alliance World Engine is a family of small fuel- and emissions-efficient aluminum four-cylinder gasoline engines co-developed by DaimlerChrysler's Chrysler Group, Hyundai Motor Company and Mitsubishi Motors Corporation.

Total World Engine production -- which includes output from two plants in Dundee, Mich.; one in Asan, South Korea; Hwasung, South Korea and Shiga, Japan -- is expected to be more than 1.8 million units per year.

Volumes of those kinds allow bundled parts purchasing to maximize cost savings. Purchased components, like pistons, valves, connecting rods, fuel injectors, oil pumps, valve springs and camshafts, have all been sourced from a broader base of suppliers, in greater quantities, at significant savings and with more performance features than the current family of Chrysler Group four-cylinder engines.

According to GEMA President Bruce Coventry, the company's non-traditional approach to the World Engine will save DaimlerChrysler $100 million a year and make his operation competitive with the world's best.

"The Global Engine Manufacturing Alliance engages the full capability of our international alliances," said Coventry in his speech. "Engine development costs were minimized. We're focused on manufacturing flexibility and implementing the principles of lean manufacturing."

Coventry laid out three philosophies that make the Global Engine Manufacturing Alliance different.

The first is a mission to target value. One example includes standardized machining centers with commonly available machines to reduce capital investment requirements and program lead times.

The second is a goal to mitigate risk. An example is to use suppliers with proven engine manufacturing and support experience in all three markets -- the United States, South Korea and Japan. Other examples include introducing procedural "speed bumps" to slow down potentially costly design changes; maintaining a common base engine; ensuring that changes enhance the product for all partners and limiting unilateral changes in order to maximize volume bundling strategies.

The third philosophy is optimization.

"We're focused exclusively on the manufacturing and assembly of the engines," said Coventry. "We rely on service providers for everything else. We've also minimized development costs by optimizing -- matching needs to expertise. DaimlerChrysler, for example, took the lead in development of the dual variable valve timing (VVT) system and validation. We've utilized the development and manufacturing knowledge and experience of each team to enhance the final product while reducing or containing cost."

Design and manufacturing efficiencies have also allowed the Global Engine Manufacturing Alliance to build high-performance features into the engine without giving it a "premium" price tag. Those features include variable valve timing, high-pressure die-cast aluminum engine block, forged-steel crankshaft and select-fit pistons, tappets and bearings. Engines of three different sizes will be manufactured, including 1.8-, 2.0- and 2.4-liter displacements, with horsepower and torque targets that rival today's V-6 engines.

"This is not your father's factory," added Coventry. "We've adopted 'enablers' to enhance our productivity and efficiency."

The 'enablers' include a proposed schedule that would increase equipment availability while providing employees with more family time. The plant is expected to run 294 days a year, giving GEMA more productivity per year at less investment than typical plant schedules.

A rigorous hiring process targets highly qualified team members. Candidates are put through a five-step selection process to test technical aptitude and team skills. The goal, according to Coventry, is to create the most qualified and productive engine-building team in the industry.

GEMA also adopted new machining processes to maximize productivity.

"Flexible machining centers in a hospital-clean manufacturing environment are the basis to the GEMA business model," said Coventry. "Compared to the traditional transfer line process, this model incorporates part recognition and automatic changeover features to allow different products to flow down the line seamlessly; even allowing for a batch size of one. An even greater benefit that machining centers give us over transfer lines is uninterrupted flow, even if there is machine downtime."

"In the end, we're creating a final product with higher precision, better performance and durability that greatly exceeds each partner company's previous standards."

"Our industry is exploring many exciting new opportunities to maximize the manufacturing organization's role as an influencer of corporate transformation. These opportunities are often determined by how intelligently we create perfect choreography between people and technology, and how completely we embrace ideas such as lean manufacturing and flexibility."

The Chrysler Group will take the lead in operating the two Global Engine Manufacturing Alliance facilities in Dundee, Mich. GEMA is investing more than $700 million in the 1 million square-foot plant, which will create approximately 550 jobs in Southeast Michigan.

Each of the two Dundee plants will have capacity of 420,000 units per year.

DaimlerChrysler Media

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