Stellantis, the world’s fourth-largest carmaker, recently made a game-changing $13 billion investment. This cash will be used to accelerate its growth here in the U.S. This powerful strategic move will create more than 5,000 jobs. It will have great effect on states such as Illinois, Ohio, Michigan, and Indiana. This investment is part of Stellantis’ ongoing strategy to strengthen its manufacturing footprint in the United States and expand its portfolio of products.
According to the company, this expansion will allow them to begin producing five new vehicles. Specifically, a Dodge Durango will be built in Detroit and a second midsize truck will be shared between plants in Toledo, Ohio. These new models will fill the growing consumer demand. In addition, these will enhance Stellantis’ competitive position in the difficult, fast-changing automotive market.
Stellantis currently runs 34 manufacturing plants, parts distribution centers and research and development facilities in 14 states. This deep, far-reaching network allows the company to manufacture more than 16 million cars, all at the U.S. market. About 8 million of these products are produced right here on the home front. The remaining 4 million come from Canada and Mexico. The company is projected to incur a monumental loss of 1.5 billion euros this year. That’s roughly $1.7 billion, and it’s almost entirely the result of punitive tariffs on vehicles manufactured beyond the U.S. borders.
Stellantis as we know it today was just born four and a half years ago, when Fiat Chrysler merged with French rival PSA Peugeot. As the story illustrates, the company is still adjusting to continuing changes in market dynamics and consumer preferences. In short, Stellantis has an excellent plan! They plan to introduce 19 reconfigured products at all of their U.S. assembly plants and refresh powertrains by 2029. Among the upcoming launches are a new Jeep Cherokee—set to be produced in Mexico—and the relaunch of the Dodge Charger.
While Stellantis had very laudable goals, they ran into some major hurdles earlier this year. In July, the company announced 2.3 billion euros (almost $2.7 billion) in half-year losses. Despite Stellantis’ less-than-rosy forecast, Antonio Filosa, head of Stellantis’ North American operations, was optimistic about the company’s prospects.
“This investment in the U.S. — 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.” – Antonio Filosa
