UPDATE 1-Chrysler to partially reopen Michigan engine plant

DETROIT, June 15 Wed Jun 15, 2011 4:02pm EDT

DETROIT, June 15 (Reuters) - Chrysler Group LLC FIA.MI said on Wednesday it will invest $114 million and partially reopen a Michigan engine plant, retaining 268 jobs.

Chrysler will repurpose about one-fifth, or 400,000-square feet, of the Trenton North engine plant to make parts for the Pentastar engine made at the Trenton South plant.

The plant was closed last month, but the need for these parts has increased as Chrysler replaces seven V-6 engines with the new Pentastar V-6 engine, Brian Harlow, head of powertrain manufacturing said in a statement.

"This investment has also given Trenton North, which has been building engines for nearly 60 years, a new lease on life," Harlow said.

According to Chrysler's website, the plant once employed 579 people, including 531 hourly workers.

Chrysler has spent $3.2 billion on its U.S. plants since June 2009, the company said. (Reporting by Deepa Seetharaman; editing by Andre Grenon)

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