The new engine will come with direct fuel injection and will have the flexibility to incorporate hybrid electric applications. The next-generation engine will be the first hybrid electric vehicle (HEV) engine for Stellantis in North America and will power two upcoming North American models.

Officially, Stellantis hasn’t confirmed the outputs of its new engine, but they did say it is based on a current production engine in Europe. Analysts were then quick to point out that Peugeot and Citroen’s 1.6-liter THP engine fits the bill. Used in vehicles such as the Peugeot 3008 and 5008, it makes 165 horsepower at 6,000 rpm and 240 Nm of torque at 1,400 rpm.

In order to ramp up production of the new 1.6-liter engine, Stellantis will invest a total of USD 99 million in three North American plants. Investments will be made at the Dundee Engine Complex in Michigan, the Kokomo Casting Plant in Indiana and the Etobicoke Casting Plant in Toronto.

Production of the new engine is expected to begin in early 2025.

The Michigan plant will continue production of the 3.6-liter Pentastar Upgrade, while the Tigershark 2.4-liter, used in vehicles such as the Cherokee, will be discontinued by the first quarter of 2023.

Engine blocks will be cast at the Kokomo Casting Plant, one of the largest facilities of its kind in the world.

Etobicoke Casting will produce the oil pan for the new engine.