(Bloomberg) —
Stellantis NV vowed to invest $13 billion in the US over the next four years as the maker of Jeep SUVs and Ram trucks seeks to reinvigorate its business in the critical market and mitigate tariff costs.
The move — billed in October as the single largest investment in its more than 100-year history — will boost annual finished vehicle production by 50% over current levels. The total dollar figure includes research and development and supplier expenses in addition to investments in manufacturing operations.
The plan marks the troubled automaker’s most ambitious attempt yet to rebuild its battered business in the US, where it’s lost market share in part due to an aging product lineup.
It’s also the latest push by a major US carmaker to announce splashy domestic investments under pressure from President Donald Trump, who has wielded steep tariffs as a tool to curtail imports and bolster domestic manufacturing and jobs. In June, General Motors Co. announced a $4 billion investment in the US to boost production of gas-powered vehicles and reduce production in Mexico.
“We want to grow in the US with American-built products,” Chief Executive Officer Antonio Filosa said in a phone interview. “We share the president’s goal to bring back jobs in the United States, as we are doing, as we will do.”
Stellantis said the plan will add more than 5,000 jobs at factories in Illinois, Ohio, Indiana and Michigan.
Filosa declined to specify how much the investments could reduce Stellantis’ tariff exposure — the company estimated in July that higher duties will set back earnings by about €1.5 billion ($1.7 billion) this year. The CEO said the plan will prompt Stellantis’ suppliers to build more components in the US, which could spur an additional 20,000 jobs, according to company estimates.
Bloomberg News reported earlier this month that Stellantis was set to announce a significant investment in the US.
The automaker said it will invest $600 million to expand production of Jeep Cherokee and Compass sport utility vehicles at its idled assembly plant in Belvidere, Illinois, in 2027, creating around 3,300 jobs.
The Belvidere plant will supply only the US market. The company’s plant in Toluca, Mexico, which currently makes the Cherokee and the Compass, will continue to do so. Stellantis’ the Brampton, Canada, plant, which had been slated to make a new version of the Compass, will no longer do so, the company said in an email.
“Their decision today proves that targeted auto tariffs can, in fact, bring back thousands of good union jobs to the US,” said UAW President Shawn Fain. “Wall Street and supposed industry experts said this was impossible. But race to the bottom created by free trade is finally coming to an end.”
After meeting with Trump in January, Stellantis said it would make a midsize pickup at the Belvidere plant. Output of that vehicle will move to a plant in Toledo, Ohio, starting in 2028.
Stellantis will also develop a new range-extended EV and gas-powered SUV at its plant in Warren, Michigan, which has suffered layoffs in recent years.
Under Filosa, who was appointed to the top job earlier this year, Stellantis has sought to recalibrate investments across regions, with a particular emphasis on the US business. Stellantis shifted production and engineering operations to lower-cost countries like Mexico under former CEO Carlos Tavares. Filosa is now seeking to reverse those moves.
“The way we know that we can grow is to invest in the right technology, in the right products, on the right brands that we have, and that’s what we are doing,” Filosa said.
(Updates with share price in third paragraph)
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