The Chrysler's Group's new four-cylinder engine will make its debut when the all-new 2007 Dodge Caliber compact car goes on sale in the first quarter of 2006. Produced at a new engine plant in Dundee, Mich., the engine eventually will power a wide variety of Chrysler, Dodge and Jeep vehicles. The Caliber will introduce several other new technologies to Chrysler Group, including electronically controlled all-wheel drive and a fuel-saving, continuously variable transmission. In addition to 1.8-, 2.0- and 2.4-liter versions of the new gasoline engine, the Caliber will feature a 134-horsepower, 2.0-liter diesel for sale in Europe. The Chrysler Group has no plans to offer the diesel, which is built by Volkswagen AG, in North America. The company's version of the engine features variable valve timing to improve power and fuel economy. Power ranges from 140 horsepower for the 1.8-liter to 150 horsepower for the 2.0-liter and 170-horsepower for the 2.4-liter. The engine consumes 5 percent less gasoline than Chrysler Group's current 2.0- and 2.4-liter engines, Eric Ridenour, Executive Vice President—Product Development, said.