Stellantis will invest $13 billion to increase production and add new products in the U.S. market, the company revealed, noting that this will be the largest investment in the history of the Chrysler Corp. side of the trans-Atlantic automaker. It also marks a significant shift in strategy since Antonio Filosa was named Stellantis CEO earlier this year. More from Headlight.News.
In the largest investment in the history of what was founded a century ago as Chrysler Corp., Stellantis will invest $13 billion in the U.S. over the next four years, funding an assortment of new products and technologies, expanding production and adding more than 5,000 manufacturing jobs in its Midwest plants.
Among other moves, Stellantis will finally reopen the plant it shuttered in Belvidere, Illinois in 2023 after several earlier plans fell through. It will produce two new Jeep models, starting in 2027. The plan also will bring to market a new range-extended EV, a new midsize pickup and a large SUV, Stellantis said.
“This investment in the U.S. – the single largest in the Company’s history – will drive our growth, strengthen our manufacturing footprint and bring more American jobs to the states we call home,” said Antonio Filosa, Stellantis CEO and North America COO. “As we begin our next 100 years, we are putting the customer at the center of our strategy, expanding our vehicle offerings and giving them the freedom to choose the products they want and love.”
The investment plan focuses primarily on the Ram and Jeep brands, though Dodge gets a new version of the Durango.
What’s new
The plans laid out by Stellantis are extensive and cover a variety of products – but they put a focus on the automaker’s two most popular and profitable North American brands. In a statement, Stellantis noted the projects include:
- Reopening the Belvidere, Illinois, plant to produce two new Jeep models;
- Adding an all-new midsize truck to be assembled in Toledo, Ohio;
- Tooling the Warren, Michigan plant to produce an all-new range-extended EV and an internal combustion engine large SUV;
- Moving production of the next-generation Dodge Durango to Detroit
- Tooling up a plant in Kokomo, Indiana to produce the all-new GMET4 EVO engine.
New jobs
Getting the Belvidere plant reopened was a key goal of UAW President Shawn Fain.
The Stellantis announcement comes at a time when automakers, in general, are feeling heavy pressure from Pres. Donald Trump to expand U.S. production and reduce their dependence on imported autos and auto parts. Major investments have been announced by a number of manufacturers, including General Motors and the Hyundai Motor Group, in recent months.
“The only way we know to consistently grow in such a competitive market is to launch the right product with the right brands, the right tech and the right powertrain,” Filosa told Automotive News.
According to Stellantis, its investment plan will result in the addition of 5,00 U.S. jobs. It wasn’t clear if all of those will be new employees or include some that had previously been laid off – including those affected by the 2023 closure of the Belvidere plant. Still, the news was well received by the United Auto Workers Union.
“A year ago, Stellantis was on a fast-track to moving their U.S. operations out of the country,” UAW President Shawn Fain said in a statement. “Their decision today proves that targeted auto tariffs can, in fact, bring back thousands of good union jobs to the U.S. Wall Street and supposed industry experts said this was impossible. But race to the bottom created by free trade is finally coming to an end.”
More Stellantis News
- Filosa Named New Stellantis CEO
- Jeep Grand Wagoneer REEV Will Deliver 500 Miles, 647 HP
- Stellantis Revives SRT Performance Division
Canada loses its Compass
Production of the Jeep Compass will be moved from Canada to the U.S.
Under the plan Stellantis announced, production of the Jeep Compass will move from a plant in Brampton, Ontario to the U.S. That set off alarms among Canadian union and government officials.
“Canadian auto jobs are being sacrificed on the Trump altar,” said Lana Payne, President of Unifor, the Canadian auto union, in a statement. “Stellantis cannot be allowed to renege on its commitments to Canadian workers, and governments cannot stand by while our jobs are shifted to the United States.”
For its part, Stellantis said it is going to continue investing in Canada. It will add a third shift at its plant in Windsor, Ontario, and will discuss with the Canadian government future plans for the Brampton factory.
A shift in focus
After his appointment, Stellantis CEO Antonio Filosa (right) launched a worldwide tour of Stellantis facilities.
The size of the investment, at $13 billion, marks a significant shift in focus for Stellantis which, some critics had cautioned, was putting its focus primarily on Europe and other markets under the hands of Carlos Tavares who unexpectedly resigned as CEO nearly a year ago. That resulted in a sharp slump in sales in the North American market, traditionally the company’s biggest source of revenues.
Things began to change when Antonio Filosa was named the region’s chief operating officer last year, and then promoted to corporate CEO, replacing Tavares, this past June. In a telling sign, Filosa has made his primary office at the sprawling Chrysler complex in Auburn Hills, Michigan, rather than in Europe where his predecessor spent most of his time.
Since coming onboard as COO and then corporate CEO, Filosa has moved quickly to fix key problems, slashing prices on a number of Jeep and Ram products, for example, and rethinking some product programs. Among other things, he has killed several electrified products, including the EV version of the Ram 1500 pickup, the Banshee, an extreme performance version of the Dodge Charger Daytona EV, and the plug-in Jeep Gladiator 4xe plug-in hybrid.
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