Jeep's parent firm Stellantis to invest $13B to revive business
What's the story
Stellantis, the multinational automotive giant, has announced a massive $13 billion investment plan for the United States. The move is part of the company's strategy to revitalize its struggling business in the country and regain lost market share. The plan includes launching five new vehicles over four years, including two new nameplates and other updates across its brand portfolio.
Job creation
Investment to create over 5,000 jobs
The ambitious investment plan by Stellantis is expected to create more than 5,000 jobs at its factories in Illinois, Ohio, Indiana and Michigan. The company has also committed $600 million to ramp up production of Jeep Cherokee and Jeep Compass SUVs at its Belvidere plant in Illinois by 2027. This move alone is expected to create around 3,300 new jobs.
Tariff reduction
Supplier impact and tariff exposure
Stellantis CEO Antonio Filosa said the investment plan will prompt the company's suppliers to manufacture more parts in the US, potentially creating another 20,000 jobs. He didn't specify how much this could lower Stellantis's tariff exposure but did say that this year it is expected to be about $1.7 billion. The move comes as part of a broader trend among major US automakers making significant domestic investments under pressure from President Donald Trump.
Vehicle launches
New vehicles on the way
Stellantis's investment plan also includes the launch of five new vehicles over the next four years, including two new nameplates. The company will continue to produce Cherokee and Compass at its Toluca, Mexico plant while the Brampton, Canada plant will no longer make a new version of the Compass. Instead, it will develop an all-new range-extended EV and a gas-powered SUV at its Warren, Michigan facility.