Italian car giant Fiat Group will expand an engine factory located in the southern city of Bielsko-Biała. According to Rzeczpospolita, the company could invest up to €400 (zł.1,898.2) million and its new production line could become operational next year.

The investment will see the expansion of the Fiat-GM Powertrain Polska plant, which was established as the result of an agreement between Fiat and General Motors in 2000. The plant manufactures 1.3-liter diesel engines for Fiat, Opel and Suzuki cars. Last year it produced over 575,000 such engines.

At the time, the investment was valued at €400 million and created 1,400 jobs. Due to the recent slowdown in diesel engine production some employees will be moved to the new plant, and the company hopes to avoid layoffs.

The plan for the new production line calls for the manufacture of 500,000 0.9-liter two-cylinder gasoline engines. The new engine units can be used in small Fiat 500s as well as in bigger Fiat Bravas.