Stellantis Plans Over $5bn Investment in the US

Stellantis, the multinational carmaker formed from the merger of Fiat Chrysler and Peugeot, has unveiled plans to invest over $5 billion in the United States. The announcement was disclosed in an internal email by Antonio Filosa, Stellantis’ head of US operations, and comes shortly after Stellantis chair John Elkann met with US President-elect Donald Trump.

The investment spans four US states—Illinois, Michigan, Ohio, and Indiana—and focuses on key manufacturing projects:

• A new mid-size pickup truck at Stellantis’ facility in Belvidere, Illinois.
• A new Dodge car to be produced in Detroit, Michigan.
• Investments in Jeep brand production at Stellantis’ Toledo, Ohio site.
• Expansion of an engine production facility in Kokomo, Indiana.

Filosa described the plans as a commitment to the company’s workforce and to producing innovative vehicles. “These investments will strengthen our great American workforce, deliver outstanding products, and integrate cutting-edge technology,” he said.

The announcement reflects Stellantis’ strategy to navigate potential trade risks under the Trump administration, which has threatened tariffs on car imports from Europe and on vehicles manufactured in Canada and Mexico. Stellantis currently manufactures 40% of its US-sold vehicles in Canada and Mexico, exposing the company to significant risk should tariffs be imposed.

European carmakers, including Stellantis, Volkswagen, and Volvo, have been closely monitoring the situation as they assess how to protect their US market shares. Moody’s recently identified Stellantis as one of the most vulnerable automakers to potential tariff increases.

In addition to its US plans, Stellantis is working to repair its relationships with stakeholders in Europe. Chair John Elkann has pledged €2 billion in investments in Italy, aimed at increasing production and addressing strained ties with the Italian government. Elkann has also engaged with French officials and the European Commission to reinforce the company’s commitments.

These developments follow a period of turbulence for Stellantis, marked by the departure of former CEO Carlos Tavares amid disagreements with the board. The company has faced declining demand for its vehicles and slower-than-expected growth in electric vehicle sales. Its shares have dropped by 50% since peaking in March 2024.