Stellantis (STLA.US) largest investment in 100 years: plans to invest $13 billion in the United States and aim to increase production by 50% per year.

Stellantis (STLA.US) announced that it will invest $13 billion in the United States over the next four years, aiming to revitalize its business in this key market and mitigate the impact of tariffs. The company stated in a statement on Tuesday that this investment is the largest in its over 100-year history, and will increase annual production of finished vehicles by 50% compared to current levels. The total amount includes investments in research and development, supplier costs, and manufacturing operations. This plan marks the automaker's largest effort to date in rebuilding its struggling business in the United States, where part of the decline in the company's market share is due to an aging product line. This also represents the latest move by a major U.S. automaker to respond to pressure from President Trump, who has used high tariffs as a means to curb imports, promote domestic manufacturing, and increase job opportunities. In June of this year, General Motors Company announced a $40 billion investment in the U.S. to increase production of gasoline-powered vehicles and reduce production in Mexico. Stellantis CEO Antonio Filosa stated in a phone interview, "We want to grow in the U.S. with products made in the U.S. We, like the President, are committed to bringing jobs back to the U.S., and we are doing that and will continue to do so." Stellantis stated that this plan will create over 5,000 new jobs at factories in Illinois, Ohio, Indiana, and Michigan. Filosa declined to disclose how much these investments could reduce Stellantis' tariff risks. The company estimates a tariff risk of about 1.5 billion (approximately $1.7 billion) this year. However, he stated that the plan will prompt Stellantis' suppliers to produce more components in the U.S., which the company estimates could create around 20,000 new jobs. The plan includes the launch of five new vehicle models over the next four years, including two new brands, and further improvements to the product lines of all its brands. The automaker announced that it will invest $600 million in 2027 to expand production of Jeep Cherokee and Compass SUVs at the idle assembly plant in Belvidere, Illinois, creating approximately 3,300 jobs. The United Auto Workers union praised Stellantis' investment as a "significant victory" for its members. UAW President Shawn Fain stated, "Today's decision proves that targeted auto tariffs can actually bring back thousands of quality union jobs to the U.S. Wall Street and so-called industry experts claimed this was impossible. But the vicious competition caused by free trade is finally coming to an end." In January, following a meeting with President Trump, Stellantis announced that a mid-size pickup truck would be produced at the Belvidere plant. The model has since been moved to a factory in Toledo, Ohio, with production planned to begin in 2028. The company also plans to introduce a new range-extended electric vehicle and a gasoline-powered SUV at its factory in Warren, Michigan. The factory has experienced layoffs in recent years. Under Filosa's leadership as CEO earlier this year, Stellantis began to realign its investments in different regions, with a focus on its crucial U.S. business. Under former CEO Carlos Tavares, Stellantis had heavily promoted the shift of production and engineering operations to lower-cost countries like Mexico. Now, Filosa is trying to reverse these moves. Filosa stated, "We are able to grow because we are investing in the right technologies, the right products, and our existing brands. That's what we are doing."