$13 Billion Stellantis Investment to Revitalize U.S. Automotive Production

Reports on manufacturing, labor and earnings with clear, practical context. Drives a Tesla Model 3 RWD; family hauler is a Volvo XC60.
Stellantis, the global automotive manufacturing giant, has announced a transformative $13 billion investment in its United States production facilities. This sweeping initiative is set to bolster the manufacturing of key models and introduce several new vehicles, including a next-generation Dodge Durango and a new large SUV. This move marks a significant pivot for the company following a tumultuous period characterized by leadership changes and declining sales.
In a bold move aimed at revitalizing its U.S. operations, Stellantis has committed $13 billion over the next four years to expand its production capabilities. This investment will reopen the Belvidere Assembly Plant in Illinois, which has been dormant since early 2023. The facility will soon be bustling with activity, producing the new Jeep Compass and Jeep Cherokee models. This revival is expected to create approximately 3,300 jobs, a boon for the local economy. The Belvidere plant's reopening is part of Stellantis's strategy to fill the gap in its lineup with the Cherokee, which was recently reintroduced as a hybrid SUV.
The realignment of Stellantis's production plans also involves shifting the manufacturing of a new mid-size Ram truck to the Toledo Assembly Complex in Ohio. This facility will receive nearly $400 million in investment to accommodate the production alongside the Jeep Wrangler and Gladiator. The new truck, marking the first mid-size offering since the discontinuation of the Dakota in 2011, is poised to hit the market by 2028. This strategic move not only diversifies the range of vehicles produced in Toledo but also adds over 900 jobs, emphasizing Stellantis's commitment to enhancing its competitive edge in the automotive sector.
In Michigan, Stellantis plans to invest nearly $100 million into the Warren Truck Assembly Plant to retool for the production of a new large SUV. This vehicle will feature both internal-combustion and range-extender plug-in hybrid powertrains, reflecting the company's push towards diversifying its powertrain options. The Warren facility, which currently builds the Jeep Wagoneer and Grand Wagoneer, is set to merge these models into a singular Grand Wagoneer by 2026. The new SUV, expected in 2028, will introduce 900 jobs, further cementing Stellantis's role as a key player in the U.S. automotive landscape.
Detroit's Assembly Complex is also slated for a significant upgrade with a $130 million investment. This will pave the way for the production of the next-generation Dodge Durango, set for launch in 2029. Meanwhile, Stellantis is preparing to start production of a new four-cylinder engine, named the GMET4 EVO, at its Kokomo, Indiana facilities. This initiative will involve over $100 million in investment and create more than 100 new jobs, underscoring Stellantis's broader strategy of enhancing its engine manufacturing capabilities.
Despite the ambitious announcements, noticeable absences from Stellantis's plans are updates on the Jeep Recon and Chrysler's electric SUV. The Recon, an off-road-focused EV, was expected to begin production in 2024, yet its future remains uncertain amid rumors of adding a combustion engine. Similarly, Chrysler's envisioned electric SUV, which was to follow the design of the 2024 Halcyon concept, appears to have stalled. These delays highlight the challenges Stellantis faces in the EV market, even as it embarks on this historic investment push.
As the largest investment in Stellantis's U.S. history, this $13 billion endeavor is poised to reshape the company's presence in the American automotive market. Alongside the introduction of new models, Stellantis plans to refresh 19 existing products and update powertrains by the end of 2029. This strategic pivot not only aims to address current market challenges but also positions Stellantis for future growth in an increasingly competitive industry landscape. With these investments, Stellantis is not just revitalizing its manufacturing capabilities but also reaffirming its commitment to innovation and job creation in the U.S.

About Priya Nair
Reports on manufacturing, labor and earnings with clear, practical context. Drives a Tesla Model 3 RWD; family hauler is a Volvo XC60.