Stellantis's US$13bn Investment Impact on US EV Production

Stellantis has committed to a US$13bn investment to scale its US operations, a move that includes funding for a new range-extended EV.

The investment is the largest in Stellantis's American history and appears to be a strategic response, given challenging market conditions, including tariffs that have impacted competitors.

The financial commitment is to be spread across the next four years, with a focus on expanding Stellantis's manufacturing footprint and launching new vehicles.

Stellantis is targeting a 50% increase in yearly vehicle production and the creation of over 5,000 jobs across Illinois, Ohio, Michigan and Indiana.

Antonio Filosa, Chief Executive Officer at Stellantis, says the investment supports a customer-first approach and ensures Stellantis strengthens its position in a key global market.

"This investment in the US – the single largest in Stellantis's history – will boost our growth, strengthen our manufacturing footprint and bring more American jobs to the states we call home," Antonio explains.

"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."

The multi-billion-dollar injection is set to fund five new vehicle launches, the development of a new four-cylinder engine and ongoing powertrain updates.

According to Stellantis, 19 refreshed vehicle models are on track for introduction across its US assembly network through to 2029.

Michigan's role in EV and ICE production

Stellantis has outlined two commitments in Michigan. The Warren Truck Assembly Plant is set to be retooled to produce a new range-extended EV alongside an internal combustion engine (ICE) large SUV. This dual drivetrain approach aligns with Stellantis's stated strategy to provide customers with a choice of products during the transition to electrification.

This programme is scheduled to begin in 2028 and will receive a US$100m investment, creating more than 900 new jobs at the plant that currently builds the Jeep Wagoneer and Grand Wagoneer.

Additionally, Stellantis has confirmed a US$130m investment to prepare the Detroit Assembly Complex – Jefferson for the production of the next-generation Dodge Durango.

This vehicle is planned for a 2029 launch and continues Stellantis's stated goal from 1 January 2025 to keep investing in legacy models while introducing newer alternatives.

Powertrain and legacy model investment

In Indiana, Stellantis' focus is on powertrain technology. Stellantis plans to produce the GMET4 EVO, a new four-cylinder engine, across several Kokomo facilities.

These upgrades total more than US$100m and will add over 100 manufacturing jobs.

This move could ensure the US becomes the main production hub for a core power unit central to the engine roadmap for Stellantis, which could be important for future hybrid models.

In Illinois, Stellantis plans to invest more than US$400m to support the production of an all-new midsize truck in Ohio.

The model will be built at the Toledo Assembly Complex alongside the Jeep Wrangler and Jeep Gladiator. Production is expected to start in 2028 and could create over 900 new jobs.

In Illinois, Stellantis plans to invest more than US$600m to reopen the Belvidere Assembly Plant, which closed in 2023.

The facility is set to restart operations in 2027 to produce the Jeep Cherokee and Jeep Compass, which is forecast to create about 3,300 jobs in the region.

A national strategy for future growth

The latest announcement from Stellantis builds on existing plans revealed on 1 January 2025. It forms part of a wider effort to scale its North American operations and improve the resilience of its supply chain.

Stellantis currently has 34 manufacturing sites, distribution centres and R&D locations across 14 US states, supporting a network of over 48,000 employees and thousands of dealers and suppliers.

By reactivating plants like Belvidere and investing in flexible manufacturing that can handle both EV and ICE models, Stellantis is positioning itself for future market changes.

This record-setting investment will enhance its product offerings and production capacity while reinforcing its long-term commitment to domestic manufacturing.