Stellantis says it will invest $13 billion over the next four years to expand its manufacturing capabilities in the United States. The move, the automaker said, will increase U.S. vehicle production by 50 percent and create more than 5,000 jobs.
The world's fourth-largest automaker said Tuesday the investment will support the production of five new vehicles, including the Dodge Durango, which will be built in Detroit, and a midsize truck, which will be assembled in Toledo, Ohio. The new jobs will be distributed across plants in Illinois, Ohio, Michigan and Indiana.
Stellantis, which was created four-and-a-half years ago by the merger of Fiat Chrysler and PSA Peugeot, hopes to offset some of the expected €1.5 billion in tariffs this year on cars made in Canada and Mexico by improving profitability in North America through the launch of new models such as the discontinued Jeep Cherokee.
The new product launches will be in addition to 19 “refreshed” products across all U.S. assembly plants and updated powertrains planned through 2029, the company said.
“This investment in the United States—the largest in the company's history—will fuel our growth, strengthen our manufacturing presence and bring more American jobs to the states we call home,” CEO Antonio Filosa said in a statement.
The announcement comes amid major headwinds for the Canadian auto industry, which is struggling with tariffs imposed by U.S. President Donald Trump, who wants to increase domestic vehicle production.
Stellantis' U.S. operations include 34 manufacturing facilities, parts distribution centers, and research and development centers in 14 states.
In Canada, the company has plants in Windsor and Brampton, Ontario, and a foundry in Toronto. This is Brampton the plant has been shut down since the beginning of 2024.
Of the 16 million vehicles that Stellantis produces for sale in the U.S. market, 8 million are built in domestic plants, and another four million are built in Canada and Mexico – all with a large number of American components. Another four million are imported from Europe and Asia, with virtually no components from the United States.
In an effort to improve the U.S. situation, Stellantis is also relaunching in the second half of 2025 models that previous management abandoned two years ago: the new Jeep Cherokee, which will be built in Mexico, and the popular gasoline-powered Dodge Charger, which is built in Windsor, Ontario.
Earlier this year, Stellantis also relaunched the Ram Hemi V8 due to dealer and customer demand.
In July, the Dutch automaker reported half-year results including a loss of 2.3 billion euros. During that period, U.S. deliveries fell by nearly a quarter as the automaker cut imports of vehicles made overseas.
Stellantis shares fell sharply in after-hours trading after closing 4.8% lower during regular trading Tuesday.
