Stellantis to pump $13B into US auto plants

On Tuesday, the automaker said it plans to invest $13 billion to expand US production by 50% over the next four years.

While it doesn’t provide actual production figures, Stellantis has said that vehicle shipments are generally aligned with current production. Last year, the company shipped 1,432,000 vehicles in North America – a 25% drop from the previous year due to inventory reductions across the automotive sector.

Stellantis is planning five new vehicle launches and 19 product refreshes through 2029.

All US assembly plants will benefit, according to the Netherlands-based company, whose US headquarters are in Auburn Hills, Mich., outside of Detroit.

“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,” commented Antonio Filosa, Stellantis CEO and North America COO.

“Accelerating growth in the US has been a top priority since my first day. Success in America is not just good for Stellantis in the US — it makes us stronger everywhere,” Filosa added.

It noted that the investments depend on negotiations and the final approval of development packages from the relevant state and local governments.

Plant investments

With a $600-million investment, Stellantis plans to reopen the Belvidere Assembly Plant in Illinois, which has been closed since 2023. The company agreed to reopen the plant as part of a labor deal with the United Auto Workers (UAW) that same year, but delayed the restart due to weak automotive demand. The plant will build the Jeep Cherokee and Compass when it reopens, creating 3,300 new jobs. Initial production is scheduled for 2027.

The company’s Toledo Assembly Complex will see a $400-million injection. Plans to assemble an all-new midsize truck in Belvidere are shifting to the Ohio plant. The Jeep Wrangler and Jeep Gladiator will continue to be made there as well. The new launch is expected in 2028 and could create over 900 jobs.

Stellantis is planning a $100-million retool of the Warren Truck Assembly Plant. The Michigan plant currently assembles the Jeep Wagoneer and Grand Wagoneer. Starting in 2028, it will begin making two vehicles currently under development. Those include an all-new range-extended electric vehicle (EV) and a large SUV with an internal combustion engine (ICE). The plant retool will create more than 900 jobs. Last September, Stellantis announced it would spend $97.6 million at the plant to produce a future electrified Jeep Wagoneer.

Reconfirming a $130-million investment, the Detroit Assembly Complex – Jefferson will begin producing the next-generation Dodge Durango in 2029. In 2022, Stellantis completed a $900-million investment at the plant for Durango production.

The company additionally confirmed a January announcement to invest $100 million at several Kokomo facilities in Indiana. Over 100 jobs will be added at the plant for the production of an all-new four-cylinder engine.

Win for labor

The United Auto Workers (UAW) praised Stellantis’ announcement as “a historic investment in US manufacturing,” which will bring good-paying union jobs back to the United States.

“This new investment will be a game-changer for UAW members. Instead of worrying about looming layoffs, we can support our families and build the quality products that we take pride in,” said Kevin Gotinsky, director of the UAW Stellantis Department.

He said the indefinite layoffs of union members have come down from a high of 3,228 in February to just over 1,700 this month.

UAW President Shawn Fain credited the targeted auto tariffs for Stellantis’ investment decision.

“A year ago, Stellantis was on a fast-track to moving their U.S. operations out of the country. Their decision today proves that targeted auto tariffs can, in fact, bring back thousands of good union jobs to the US,” Fain said.