DaimlerChrysler Drops Plans For New Wisconsin Plant

KENOSHA, Wis. (AP) – A week after announcing plans for a major restructuring of its Chrysler Group and thousands of job cuts, DaimlerChrysler has given up plans for a new engine plant in the Kenosha County town of Somers, a spokeswoman said.

The company still is considering whether to reinvest in the existing Kenosha engine plant as the site for the Phoenix engine program, a V-6 engine platform the automaker may use to replace all its existing V-6 engines, spokeswoman Michelle Tinson said Wednesday.

''Somers is no longer an option, but we are still considering the existing facility,'' she said, adding there was no timeline for a decision on whether to retrofit the existing plant for Phoenix engine production.

The company had faced an upcoming deadline to purchase the Somers site for a new $500 million plant.

The Kenosha Area Business Alliance secured a contract to purchase the 223-acre site.

Alliance president Todd Battle said he had made an agreement with the land owners to extend the deadline, but Chrysler this week indicated the land wasn't needed.

Battle and Kenosha County Executive Allan Kehl said they weren't disappointed to see the purchase fall through, and they hope to see Chrysler invest in the existing plant.