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By Pras Subramanian
Big Three automaker Stellantis (STLA) announced an investment of $13 billion as it seeks to expand its manufacturing footprint in the US.
The maker of Jeep, Dodge, and Ram pickups said the $13 billion spend, the largest in its 100-year history, would result in US production jumping by 50%, with five new vehicle launches and 5,000 new jobs over the next four years.
The investment comes after the White House’s extensive tariff actions made imports from regions like Mexico, Canada, and Europe, where Stellantis operates some facilities, too costly. President Trump has said that he wants more auto manufacturing in the US.
Stellantis stock jumped over 5% in after-hours trading.
“This investment in the US — 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 in a statement. “Accelerating growth in the US has been a top priority since my first day.”
The investments come across plants in states including Illinois, Ohio, Michigan, and Indiana, Stellantis said.
The biggest spend will take place in Illinois, where the Belvidere Assembly Plant will receive $600 million to reopen by 2027, expanding production of the Jeep Cherokee and Jeep Compass SUVs in the US. This plant closed in 2023 when the prior-generation Jeep Cherokee was cancelled, leading to bitter accusations by the United Auto Workers that Stellantis and then-CEO Carlos Tavares deceived the union.
Another $400 million is earmarked for Ohio’s Toledo assembly plant, where a new midsize truck will be built alongside the Jeep Wrangler and Gladiator. Stellantis said the move will create 900 new jobs by 2028.
Michigan’s Warren Truck Assembly Plant will receive $100 million for retooling in order to make a new hybrid range-extended EV as well as a gas-powered SUV. The plant, which currently assembles the Jeep Wagoneer and Grand Wagoneer, will also add 900 jobs, with production also timed for 2028.
Other investments include Detroit Assembly for the new Durango and Indiana’s Kokomo facility for new engine development, with R&D and supplier costs planned across the next four years to support the expansion effort.
Filosa’s plans come after the surprise dismissal of Tavares late last year, with Stellantis’ US businesses faltering due to bloated inventory and higher prices.
Stellantis' new investment follows a similar move by GM, which earlier this year committed $4 billion to expand its US manufacturing capabilities.