General Motors may be stopping production of its legendary Camaro and Firebird models, but it is continuing with its $500 million investment in a new engine operation at its plant in Tonawanda, N.Y., which already made four-, six- and eight-cylinder engines. Another new, $160 million engine line is on the way for the company's facility in Defiance, Ohio, outside Columbus. The new products won't start production until 2003 and 2004, but the company is seeing at least some spin-off already. In October, BorgWarner Morse TEC, a supplier to GM as well as other OEMs, will locate a new powder metal operation in Cortland, N.Y., to support expanding its engine timing system business in nearby Ithaca.
      "New products such as powder metal sprockets for both timing system and transmission applications are expected to provide growth potential for this operation," says Division President and General Manager Roger Wood, who offers a twist on the traditional arrival of foreign know-how on American shores. "Trends in engine timing systems from belts to chains in Europe and Japan are expected to offer additional growth opportunities."
      Construction began in February on a $455 million expansion at the DaimlerChrysler transmission plant in Kokomo, Ind. The move will allow for first-time North American production of the touted W5A580 transmission, which is used in the Mercedes-Benz S-, E-, C- and M-Class vehicles. The expected production of 400,000 units annually will support their use in Chrysler, Dodge and Jeep vehicles as well. The Indiana transmission plant employs 1,700, and has been in production since 1998.
      In May, the Chrysler Group announced an expansion of its Toluca, Mexico, plant in order to help meet the worldwide demand for its popular PT Cruiser series of vehicles. The expansion requires an investment of $300 million, which will stretch the plant's capacity by 80,000 -- to 260,000 vehicles per year, beginning in the fall of 2002.
      "Among the many scenarios we studied to gain incremental volume of PT Cruiser, this was the best business decision," says Dr. Dieter Zetsche, Chrysler Group president and CEO, echoing the thoughts of many automotive leaders who have looked to Mexico in the past several years. "This is another example of our continued investment in innovative products that represent the strength and future of this company."
      In fact, the PT Cruiser is so popular, the company might even find room to make it at the new Jeep Liberty plant in Toledo, Ohio, as the old-line Cherokee brand fades away.