Recent announcements show OEMs bringing engine production back home
Ford has started production of its new twin-scroll 2.0-litre and 2.3-litre EcoBoost engines at its Cleveland engine plant, adding the engines to US production for the first time. The 2.0-litre will be installed in the all-new Ford Edge, launching in the first quarter of 2015, and the 2.3-litre available in the Mustang, Explorer and Lincoln MKC. Ford invested nearly USD200 million preparing the plant for the new engine, and added 450 new jobs.
The Cleveland engine plant also builds Ford’s 3.5-litre EcoBoost and 3.7-litre V6 rear-drive application engine. According to IHS Automotive powertrain forecast data, adding the second line for the 4-cylinder EcoBoost engines increases output from Cleveland from 490,000 engines in 2014 to about 1.05 million by 2016. V6 and I4 output from the facility is forecast at roughly 50% each, once the I4 engines see full-year production in 2016.
North American demand for these engines, built on the DURATEC35 platform, had previously been filled by Ford’s engine plant in Valencia, Spain, which will continue to machine and ship components for both engines to North America but now becomes the exclusive production location for the 2.0-litre version.
The addition of the plant though is just a part of a more localised engine strategy for the Detroit Three. In late February, GM inaugurated a new engine plant and aluminium smelter at its industrial complex in Toluca, Mexico. The additional investment includes capacity for GM’s small gas engines (SGE), and is a result of a USD751 million, three-year investment. In late 2014, GM also announced a USD233 million investment into small engine production in the United States.
According to the IHS Automotive powertrain forecast, GM will see output from Toluca from 94,000 engines in 2013 to nearly 220,000 by 2016. While current production supplies the Chevrolet Cruze, Malibu, Sonic and Equinox as well as GMC Terrain, future products expected to see 4-cylinder engines from Toluca include the Chevrolet Impala, Buick LaCrosse, Cadillac SRX, Chevrolet Silverado, Chevrolet Trax, and Chevrolet Traverse – though many of these additions are not scheduled to arrive until early in the next decade. The company’s investment in Mexico includes investment to double production as well as efforts to increase local auto-parts sourcing.
Engine production strategy
The DURATEC35 platform is the primary V6 gasoline engine for Ford's North American line-up. This engine platform consists of 3.5L and 3.7L naturally aspirated engines as well as a 3.5L twin-turbo (EcoBoost) version. The 3.5L V6 twin-turbo engine with output of approximately 360hp and 350 pound-feet of torque is installed in the Ford Taurus, Ford Flex, Lincoln MKS, Lincoln MKT, Ford Explorer, and Ford F-150. Ford is working on a new V6 engine to complement the DURATEC35 platform called NANO.
Ford is also planning a smaller 3.3L V6 engine off of this platform. This engine will be naturally aspirated and will begin to replace the 3.5L engine to offer better fuel economy. Ford is expected to use the DURATEC35 GTDI version for its full-hybrid F-150.
Growth at General Motors’ Toluca plant is set to come from the SGE platform, which stands for small gas engine, and is also sometimes referred to as MICROTEC. Currently, it includes a 1.4L 4-cylinder engine, which will replace the 1.4L OPEL FAMILY 0 engine for North America. Current volume projections have been estimated at approximately 300,000 engines per year per plant. There is also a 3-cylinder version built off this platform and a larger 1.5L engine, either of which could be mated to hybrid applications. However, the 1.4L 4-cylinder variant is used for the Cadillac ELR.
Overall engine production in North America is set to rise from 14.3 million units in 2013 to 16 million in 2016, with an extra half a million units being added to production each year. Ford expects the new engine to build on the take rate for V6 engines in the next-generation pick-up, as it says 57% of current F-150 customers have opted for the current 3.7-litre V6 or 3.5-litre EcoBoost V6.
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