Stellantis, the multinational automotive group, announced on Tuesday (October 14) that it will invest $13 billion in the United States over the next four years, marking the company’s largest investment in history. This investment will be used to expand production capacity and launch five new vehicle models, with an anticipated creation of approximately 5,000 jobs in the Midwestern region of the United States.
According to Reuters, Stellantis CEO Antonio Filosa stated that the investment will be distributed among multiple factories in Michigan, Illinois, Ohio, and Indiana, to develop new vehicle models and expand existing production capacity.
One of the most anticipated investments is in the Belvidere plant in Illinois. The plant, which has been closed since 2023, has been a focal point of negotiations between the United Auto Workers (UAW) and the company. Stellantis announced that the plant will be reactivated in 2027, producing two Jeep models and is expected to add approximately 3,300 new job positions.
Sean Fain, the President of the United Auto Workers, expressed, “Today’s decision proves that targeted automotive tariffs can indeed bring thousands of quality union jobs back to the United States.”
Filosa pointed out that this investment will help alleviate the impact of the new tariff policies introduced by the Trump administration on the company. Stellantis projects that this year’s tariffs will increase costs by approximately $1.7 billion. However, Filosa emphasized, “The tariff issue is becoming clearer, and we will consider it as a variable in the business equation, and we are well prepared to deal with it.”
Following the announcement, Stellantis’s stock in the US market rose by approximately 4% in after-hours trading on Tuesday.
Filosa took over as CEO in June of this year, succeeding Carlos Tavares who resigned suddenly at the end of last year. Prior to Filosa’s appointment, some US dealers criticized the company for its aggressive pricing strategies, leading to higher vehicle prices and declining sales.
Having joined the group in 1999, Filosa is considered a seasoned manager in the North American market. He plans to unveil a new strategic plan in the second quarter of next year, which was originally scheduled to be announced in the first quarter of this year but has been delayed to refine the details.
Stellantis was formed by the merger of the French PSA Peugeot Citroën Group and the Italian-American Fiat Chrysler Automobiles (FCA) in 2021, with its headquarters in the Netherlands, making it the fourth-largest global automaker. The group owns several well-known brands including Jeep, Chrysler, Dodge, and Peugeot.