Stellantis says it will invest $13B to expand its U.S. operations, adding more than 5,000 jobs
Stellantis says it will invest $13 billion US over the next four years to expand its manufacturing capacity in the United States, a move the automaker says will increase its U.S. vehicle production by 50 per cent and add more than 5,000 jobs.
The world’s fourth-largest carmaker said Tuesday the investment will support the introduction of five new vehicles, including a Dodge Durango to be built in Detroit and a midsize truck to be assembled in Toledo, Ohio. The new jobs will be spread across plants in Illinois, Ohio, Michigan and Indiana.
Stellantis, which was created four-and-a-half years ago with the merger of Fiat Chrysler and PSA Peugeot, hopes to counteract some of the expected 1.5 billion-euro cost of tariffs this year on cars produced in Canada and Mexico by boosting North American profitability with new model launches like 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 U.S. — 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,” CEO Antonio Filosa said in a statement.
The announcement comes amidst major headwinds for the Canadian auto industry, which is grappling with tariffs imposed by U.S. President Donald Trump, who wants to see more domestic vehicle production.
Stellantis’ operations in the U.S. include 34 manufacturing plants, parts distribution centers and research and development sites across 14 states.
In Canada, the company has a plants in Windsor and Brampton, Ont., and a casting facility in Toronto. Its Brampton plant has been shut down since early 2024.
Of the 16 million cars Stellantis produces for sale in the U.S. market, 8 million are made in domestic plants, and another four million in Canada and Mexico — all with a large number of U.S. components. Another four million are imported from Europe and Asia, with virtually no U.S. components.
In pursuit of a U.S. turnaround, Stellantis is also relaunching in the second half of 2025 models that previous management nixed two years ago: a new Jeep Cherokee, which will be produced in Mexico, and the popular gas-powered Dodge Charger, which is made in Windsor, Ont.
Earlier this year, Stellantis also relaunched the Ram Hemi V8 due to dealer and customer demand.
In July, the Netherlands-based automaker reported half-year results including losses of 2.3 billion euros. During the period, U.S. shipments were down by nearly a quarter as the carmaker reduced the importation vehicles produced abroad.
Shares in Stellantis fell sharply in after-hours trading after closing 4.8 per cent lower during regular trading Tuesday.
