KENOSHA, Wis. (AP) -- Chrysler said today it plans to invest $450 million in its Kenosha plant in order to make the next generation of V6 engines.

Chrysler executives are making the announcement this morning in Kenosha.

It puts to rest fears that the company would pull out of the Kenosha facility, which employs about 850 people.

Chrysler says it expects to employ 700 once the plant is retooled.

It will be retooled beginning in June 2010 and plans to begin production of the new engines the following January.

Chrysler was given an incentive package worth nearly $17 million in grants and loans from the state, county and city.

Chrysler says the new family of engines will be more fuel efficient and is part of its plan to produce engines, axles and transmissions that conserve gasoline.