TLDR
- Stellantis announced a $13 billion investment in US manufacturing, the largest in its 100-year American history, boosting production by 50%.
- The plan includes reopening the Belvidere, Illinois plant with $600 million for Jeep Cherokee and Compass production by 2027.
- Five new vehicle launches and 5,000 new jobs are planned across Illinois, Ohio, Michigan, and Indiana through 2029.
- Toledo will receive $400 million for midsize truck production, while Warren gets $100 million for hybrid EV development.
- STLA stock surged 8% in after-hours trading following the announcement on Tuesday.
Stellantis dropped major news Tuesday with a $13 billion commitment to US manufacturing operations. The investment spans four years and marks the biggest bet the company has ever made on American production.
The automaker plans to boost US production capacity by 50% through 2029. This expansion includes five new vehicle launches and 19 product updates.
STLA stock jumped 8% in after-hours trading after the announcement. Shares had closed regular trading at $9.91, down 2.56%.
The investment will create more than 5,000 jobs across multiple states. Illinois, Ohio, Michigan, and Indiana will see the majority of the funding.
CEO Antonio Filosa called the move critical for company growth. “This investment will drive our growth, strengthen our manufacturing footprint and bring more American jobs,” Filosa stated.
Belvidere Plant Gets Second Chance
The Belvidere, Illinois facility receives over $600 million to reopen by 2027. Stellantis shuttered the plant in 2023 after discontinuing the previous Jeep Cherokee model.
The closure created tension with the United Auto Workers union. UAW leadership accused former CEO Carlos Tavares of misleading them about the plant’s fate.
Jeep Cherokee and Compass production will return to Belvidere. The reopening signals a fresh start after the company’s rocky period under prior management.
Ohio and Michigan Facilities Expand
Toledo’s assembly plant lands nearly $400 million for a new midsize truck line. The vehicle will share production space with the Jeep Wrangler and Gladiator.
More than 900 jobs will come to Toledo by 2028. The plant already serves as a hub for Jeep manufacturing.
Warren Truck Assembly in Michigan gets nearly $100 million for retooling. A new hybrid range-extended EV and gas-powered SUV will be built there.
Warren currently produces the Jeep Wagoneer and Grand Wagoneer. Over 900 jobs will be added when production begins in 2028.
Detroit Assembly Complex receives $130 million to prepare for next-generation Dodge Durango manufacturing. Kokomo, Indiana facilities get more than $100 million for engine development.
The new GMET4 EVO four-cylinder engine will be built in Kokomo starting in 2026. This creates more than 100 additional jobs.
Strategic Shift After Leadership Change
The investment follows White House tariff policies that made imports from Mexico, Canada, and Europe costlier. President Trump has advocated for more domestic auto production.
Filosa assumed the CEO role after Tavares was dismissed late last year. The US business had faced challenges with excess inventory and elevated pricing.
General Motors committed $4 billion to US manufacturing earlier this year. Stellantis’ investment is more than three times larger.
Stellantis operates 34 manufacturing facilities across 14 US states. The company employs roughly 48,000 workers and works with 2,600 dealers.
