Stellantis invests billions in the US to launch new Dodge V8 sports car.

In a recent development, it has been reported that the multinational automotive group Stellantis is planning to invest $10 billion in the United States. This move comes as President Trump considers significant tariff cuts on cars assembled in the United States.

Stellantis, which has faced a decline in sales performance in recent years, is looking to make a comeback in the US market. The group aims to revive the former glory of the Jeep brand, explore investments in Dodge including the launch of a new Dodge V8 high-performance sports car, and potentially expand to the Chrysler brand as well.

The group had already planned to invest around $5 billion in the US this year. Sources have revealed that in the coming weeks, Stellantis is set to add another $5 billion to reach a total investment of $10 billion. The funds will be utilized for plant re-openings, hiring employees, introducing new car models, with manufacturing sites planned in Illinois and Michigan, among other locations.

Negotiations are still ongoing, and the final decision regarding the investment amount and specific projects is subject to change.

Since its establishment in 2021, Stellantis, under the leadership of former CEO Carlos Tavares, had been shifting production lines and research to low-cost countries like Mexico, while heavily investing in Europe despite soft automotive demand and low profitability in the region.

Following the appointment of the current CEO Antonio Filosa earlier this year, the group has realigned its global investment strategy. Some measures have proven effective, with a rise in third-quarter vehicle deliveries in the US boosting investor confidence.

Filosa has reduced investment in Europe, including withdrawing support for hydrogen car joint ventures and considering the sale of car-sharing businesses. The group has also engaged McKinsey & Co. to provide strategic advice for Maserati and Alfa Romeo. Filosa has repeatedly denied plans to sell Maserati.

A spokesperson for Stellantis stated, “The CEO is conducting a comprehensive review of all future investments of the company, as part of preparing for next year’s strategic updates and Capital Markets Day. The relevant review work is still ongoing.”

Analysis from Bloomberg highlights that Stellantis’ investment plans mirror those of other industrial companies making large-scale investments in the US, aiming to gain Trump’s support and mitigate tariff impacts. For example, South Korea’s Hyundai Motor plans to increase its US investment to $26 billion, while several large European pharmaceutical companies have committed to investing billions of dollars.

This investment could fulfill Stellantis Chairman John Elkann’s commitment to Trump – to produce a new midsize pickup truck at the idle factory in Belvidere, Illinois, providing employment opportunities for approximately 1,500 workers. Elkann had met with Trump to discuss US investments.

However, Stellantis’ expanded presence in the US market has raised concerns among European labor unions. With brands like Fiat and Peugeot, the group is grappling with overcapacity in Europe, leading to temporary production halts at some factories due to low demand for certain models.

Filosa is scheduled to meet with Italian labor unions on October 20.

(This article draws on reports from Bloomberg and Reuters)