Chrysler Cuts Shift at Dundee Engine Plant

Chrysler Group LLC has eliminated one of two shifts at the Dundee, Mich., factory that makes its 1.4-liter four-cylinder engine, the company's most fuel-efficient powerplant.

Chrysler says it is cutting production because of slow demand for Dodge Dart compact sedans equipped with that engine, which also powers the Fiat 500 minicar.

The company has dismissed 14 new employees at Dundee and reassigned 44 workers to other jobs there. The facility also builds 2.0- and 2.4-liter four-cylinder engines.

Dart buyers have a choice of the 1.4- or 2.0-liter engine. The former is available only on versions that cost $2,000-$4,000 more than the base model. The company plans to offer the car with a 2.4-liter engine this spring.

When Chrysler launched the Dart last year, the 1.4-liter version with the "Aero" package was rated at 41 miles per gallon in highway driving. That fulfilled owner Fiat SpA's pledge to the American government to deliver a U.S.-made Chrysler model rated 40 mpg or better.

In exchange, Fiat received an additional 5% stake in Chrysler in January 2012, thus bringing its ownership to the current level of 58.5%.