"Three major automakers are working in partnership to create new engines for their vehicles, and those engines will help drive the economy of Southeast Michigan," said Gov. Jennifer Granholm. The facility is expected to create 172 new jobs in the first year of operation and 400 new jobs over a five-year period.

"We are moving aggressively ahead with our plans to build a facility and begin production of a new family of fuel- and emissions-efficient power plants," said Dieter Zetsche, president and CEO of DaimlerChrysler. "These engines will power future generations of Chrysler Group vehicles and may also supply the needs of our Alliance partners."

Global Engine Alliance had considered locating the new facility and jobs in two other Midwest states. On Tuesday, the Michigan Economic Development Corp. awarded Single Business Tax credits worth up to approximately $14.4 million over a 20-year period and up to $400,000 in Economic Development Job Training grants to encourage the company's decision. Additional assistance for the company includes:

• a 50% abatement of the company's new real and personal property by the Village of Dundee, worth an estimated $21.9 million over 12 years;

• a $5 million Community Development Block Grant to the village of Dundee for land acquisition, site preparation, and improvements to support the new facility; and

• the MEDC's support of Dundee's application for road infrastructure improvement grants valued at $1.6 million to support the new facility.

Pending final corporate approval, the new facility will be built on a 260-acre site in Dundee. In addition to manufacturing space, the facility will include warehouse and office space.

The alliance was formed on June 7, 2002, by the three companies to jointly design, develop, and engineer a new family of in-line 4-cylinder gasoline engines to be used in future generations of vehicles. The three partners equally own the joint venture company.