Stellantis Shifts Focus: $13B US Investment Prioritizes Tech Over EVs

Stellantis Announces $13 Billion U.S. Manufacturing Investment

Stellantis, the global automotive group encompassing brands like Chrysler, Jeep, and Ram, has announced a significant $13 billion investment. This capital will be directed towards bolstering its U.S. manufacturing capabilities over the coming four years.

The investment forms part of a comprehensive revitalization strategy spearheaded by the company’s recently appointed CEO. It signifies a commitment to strengthening the automaker’s presence within the North American market.

New Vehicle Development and Production

As a result of this investment, five new vehicles are slated for development and production by 2029. Manufacturing will take place across facilities located in Illinois, Ohio, Michigan, and Indiana.

The plan includes the resumption of operations at the Belvidere Assembly Plant in Illinois. This reopening will facilitate expanded production of the Jeep Cherokee and Jeep Compass models specifically for the U.S. market.

Furthermore, the initiative will support the creation of a new four-cylinder engine. In total, the investment is projected to generate over 5,000 new employment opportunities.

A Shift in Investment Focus

Notably, this investment differs from previous large-scale commitments. It does not primarily center around the development of electric vehicles.

While electrification isn’t the primary focus, one of the five new vehicles will be a range-extended EV. This vehicle combines a battery with a gasoline generator to extend its driving range.

Production of this range-extended EV is scheduled to begin at the Warren Truck Assembly Plant in Michigan in 2028. The plant will also produce a new, large, gasoline-powered SUV.

Specific Vehicle and Engine Plans

The investment encompasses several specific vehicle projects. These include a next-generation Dodge Durango, planned for production at the Detroit Assembly Complex in 2029.

A new midsize truck will be assembled at the Toledo Assembly Complex in Ohio. Additionally, a completely new four-cylinder engine, designated the GMET4 EVO, will enter production at the Kokomo, Indiana, facility starting in 2026.

Executive Statements and Strategic Direction

Antonio Filosa, CEO of Stellantis and COO for North America, stated that the investment will be instrumental in driving the company’s growth. It will also reinforce its manufacturing base and contribute to job creation within the states where Stellantis operates.

Filosa emphasized the importance of success in the U.S. market, noting that it benefits Stellantis’s global operations. He stated, “Accelerating growth in the U.S. has been a top priority since my first day.”

Adjustments to Electrification Strategy

Over the past year, Stellantis has revised its electrification plans for the U.S. market. In September, the company announced the removal of a planned electrified Jeep Gladiator from its product lineup as part of a strategic reassessment.

Earlier in the same month, plans for a battery-electric full-size pickup were also canceled. However, Stellantis remains committed to producing the extended-range Ram 1500 REV, previously known as the Ramcharger.

These adjustments reflect a more nuanced approach to electrification, balancing EV development with continued investment in internal combustion engine technology.