Chrysler invests on shakey ground

AS NEGOTIATIONS over the sale of the Chrysler Group continued behind closed doors last week, president Tom LaSorda kick-started a "powertrain offensive" that will see $US3 billion invested to produce "more fuel-efficient engines, transmissions and axles and provide Chrysler Group with a more competitive powertrain portfolio".

Some $US1.78 billion will be invested in Michigan, US, which will be the production source for a new "Phoenix" family of V6 engines (from 2009).

Phoenix will become the sole V6 engine architecture for the company, paring back from the four currently used.