Stellantis invests $13 bn in US plants – for combustion models
New Stellantis CEO Antonio Filosa described the plan as the largest single investment in the company’s 100-year history. With the $13 billion (around €11.2 billion), Stellantis aims to expand US production by 50 per cent, launch five completely new models and 19 product updates, and create more than 5,000 new jobs – mainly in the Midwest.
According to the announcement, a new four-cylinder engine will be produced at the Kokomo components plant in Indiana, while a new mid-size truck will be built in Toledo, Ohio. The Jeep factory in Belvidere, Illinois – closed in 2023 – will reopen to manufacture two combustion-engine Jeep models. In Michigan, the next generation of the Dodge Durango will be assembled in Detroit, and a completely new large SUV will be produced in Warren. The latter is expected to be offered as both a combustion-engine model and a range-extended EV, making it the only vehicle in the announcement with any mention of partial electrification. Stellantis has not announced any new fully electric models.
Under former US President Joe Biden, carmakers had to meet strict CO₂ requirements, which led to a reduction in combustion models and the introduction of new electric vehicles. Jeep had also shut down its Belvidere plant, which built the Cherokee and Compass for the US market. The discontinuation of these models contributed to Stellantis’ sales decline in the United States in 2024. The company now plans to restart production at Belvidere in 2027 with investments of around $600 million, reviving these model lines and creating around 3,300 jobs. The next-generation Jeep Compass was originally scheduled to be built in Brampton, Canada, but renovation work there came to a halt in February.
At the Toledo Assembly Complex, where Jeep currently produces the Wrangler and Gladiator models – both due for updates among the 19 announced product refreshes – Stellantis will invest $400 million to build “an all-new midsize truck” from 2028. The company has not yet disclosed which brand the new vehicle will carry.
Little information about new EREV SUV
Few details have been released about this large SUV with a range-extender system. Stellantis has not confirmed which brand it will represent, but production is planned to begin in 2028 at the Warren Truck Assembly Plant. The $100 million investment there refers only to the plant itself, not to vehicle development. The site currently builds the Jeep Wagoneer and Grand Wagoneer.
As part of its multi-energy strategy, Stellantis has designed its STLA platforms to accommodate various powertrains, from petrol engines to battery-electric drivetrains. The impact on vehicle plants is therefore expected to be limited. However, suppliers, component plants, and battery joint ventures could be more affected. Stellantis operates the StarPlus Energy joint venture with Samsung SDI, which is building a cell factory in Kokomo, and NextStar Energy with LG Energy Solution, which is constructing a facility in Windsor, Canada.
Antonio Filosa, who became CEO of Stellantis in June and also serves as COO for North America, said growth in the US “has been a top priority since my first day.” He added: “This investment in the US – 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. As we begin our next 100 years, we are putting the customer at the centre of our strategy, expanding our vehicle offerings and giving them the freedom to choose the products they want and love.”
Stellantis operates 34 plants, parts distribution centres, and research and development facilities across 14 US states, employing more than 48,000 people. The company also works with 2,600 dealers and 2,300 suppliers “in thousands of communities across the country,” it said.
This article was first published by Sebastian Schaal for electrive’s German edition.
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