Automotive manufacturer Stellantis NV is preparing to invest $10 billion in the United States as the maker of Jeep sport utility vehicles and Ram pickups tries to refocus on the market that has been central to its profits.
According to a report from Bloomberg, the company plans to announce in the coming weeks an additional $5 billion of new money on top of a similar amount already earmarked earlier in the year.
The investment will be rolled out over several years and directed into American plants, including potential re-openings, new hiring, and fresh model launches in Illinois and Michigan.
Stellantis is working to regain the momentum of the Jeep brand and is weighing new spending on Dodge, which could include a new Dodge V8 muscle car. There is also the possibility of renewed investment in the Chrysler brand over the long term.
Talks remain ongoing and no final decisions have been made on the precise allocation of funds or the full list of projects… at least not for now.
Filosa directs Stellantis money back into U.S. factories
The spending effort reflects a strategy led by Antonio Filosa, who took over as Chief Executive Officer in May. Antonio is carrying out a review of investments across all regions.
Under former CEO Carlos Tavares, Stellantis moved production and engineering work to lower-cost countries like Mexico and poured funds into Europe, where car demand is weak and profits are slim.
“As part of the preparations for the company’s strategy update and capital markets day next year, the CEO is leading a thorough evaluation of all future investments. This process is ongoing,” a company media representative allegedly said in an emailed statement.
The action mirrors other big investments by companies aiming to strengthen their position in the world’s largest economy and ease pressure from President Donald Trump’s administration.
Hyundai Motor Group announced in August it would increase its U.S. investment by $5 billion to $26 billion through 2028, and several major European pharmaceutical companies have pledged billions for new American projects.
Stellantis faces union demands and tariff fights
The new cash could also help Stellantis meet a pledge by Chairman John Elkann, who has met Trump previously to discuss U.S. investments, to manufacture a new midsize pickup vehicle at the company’s idled plant in Belvidere, Illinois, where it has committed to returning about 1,500 employees to work.
This would also respond to concerns from the United Auto Workers union, which has already held talks with Stellantis on the issue. At the same time, the company has been lobbying Washington to waive or reduce a possible 25% tariff that could affect medium-duty Ram pickups built in Mexico.
Antonio, an industry veteran from Fiat Chrysler Automobiles, is trying to stabilize a group that has lost market share in the U.S. and Europe following strategic missteps under Carlos while also navigating the impact of Trump’s tariffs on the automotive industry. Some of his efforts are beginning to show results, with a gain in third-quarter U.S. deliveries that lifted investor optimism last Thursday.
The new CEO has also begun rolling back European investments, including pulling out of a hydrogen-vehicle venture with Michelin and Forvia SE.
Stellantis is also considering a sale of its Free2move car-sharing business, Bloomberg reported this week. Earlier this year, the company hired McKinsey & Co. for strategic advice on Maserati and Alfa Romeo, and has repeatedly denied any plans to sell Maserati.
The increased focus on the U.S. is raising alarms among European unions, since Stellantis also owns brands like Fiat and Peugeot and faces manufacturing overcapacity as Chinese automakers led by BYD Co. push into the region with cheaper cars.
Stellantis has temporarily paused production at eight plants in Europe due to weak demand for models such as the Alfa Romeo Tonale SUV and the Fiat Panda. Antonio is scheduled to meet Italian labor union representatives on October 20 as concerns grow about possible plant closures.
Late last year, Stellantis presented an ambitious production plan for Italy, adding pressure on Antonio to deliver on those promises.
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Source: https://www.cryptopolitan.com/stellantis-10-billion-u-s-expansion-plans/
