Stellantis investing $13B in US to boost production
Published in Business News
Stellantis NV plans to pump $13 billion into its U.S. operations over the next four years in what the transatlantic automaker says is the largest investment in its history.
The investment supports the introduction of five new vehicles, an all-new four-cylinder engine and more than 5,000 jobs at its facilities in Michigan, Ohio, Illinois and Indiana. The infusion appears to include many of the around $5 billion in investments Stellantis already detailed shortly after President Donald Trump took office in January.
The changes will increase Stellantis' annual vehicle production in the United States by half, according to the automaker.
“Accelerating growth in the U.S. has been a top priority since my first day. Success in America is not just good for Stellantis in the U.S. — it makes us stronger everywhere,” CEO Antonio Filosa said.
The announcement Tuesday clears up some lingering questions about where prominent vehicles will be built over the next few years. It says the Belvidere Assembly Plant in Illinois will make the Jeep Cherokee and Jeep Compass; the automaker previously said it planned to reopen the shuttered plant to make a midsize truck. Belvidere's investment is more than $600 million.
That midsize Ram truck will now be built at the Toledo Assembly Complex in Ohio, which will get an infusion of $400 million. It joins the Jeep Wrangler and Jeep Gladiator, which are already built there.
And at Michigan's Warren Truck Assembly Plant, which underwent significant layoffs last year, the automaker said a new range-extended EV and gas-powered large SUV will be introduced beginning in 2028. About $100 million will be spent on retooling that facility.
The company will also pump $130 million into the Detroit Assembly Complex-Jefferson, where it previously announced it was going to build the next-generation Dodge Durango.
Stellantis also said it planned continued investments at its Kokomo, Indiana, facilities to make an all-new four-cylinder engine starting in 2026.
Stellantis' crosstown rivals have been making similar investment announcements. In June, General Motors Co. announced plans to invest $4 billion to move production from Mexico to three plants in the United States, including its shuttered Orion Assembly plant in suburban Detroit.
GM said full-size SUVs and light-duty pickups would come to Orion, which was being retooled to build electric trucks before market demand waned. The gas-powered Equinox compact SUV is slated for Fairfax, Kansas. And the gas-powered Blazer, controversial when it was launched at a GM plant in Mexico, will be produced in Spring Hill, Tennessee.
Manufacturing reshoring is likely to be considered a major victory for Trump's trade-and-tariffs policy — and could be a harbinger of additional moves by manufacturers, foreign and domestic.
Reshoring American auto jobs has been a longstanding promise from Trump, on the campaign trail in Michigan and during his two stints in the Oval Office. Since returning to Washington in January, Trump has used tariff policies to put pressure on automakers to locate more of their production in the United States.
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