Stellantis says it will invest $13 billion over the next four years to expand its manufacturing capacity in the United States, a move the automaker says will increase its domestic vehicle production by 50% and add more than 5,000 jobs.
The world’s fourth-largest automaker said Tuesday that the investment will support the introduction of five new vehicles, including a Dodge Durango that will be built in Detroit and a midsize pickup truck that will 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 from the merger of Fiat Chrysler and PSA Peugeot, hopes to offset some of the expected 1.5 billion euro ($1.7 billion) cost of tariffs this year on cars produced in Canada and Mexico by boosting profitability in North America with launches of new models such as the discontinued Jeep Cherokee.
The new product launches will add to 19 “refreshed” products at all U.S. assembly plants and updated powertrains planned through 2029, the company said.
“This investment in the United States, the largest in the company’s history, will fuel our growth, strengthen our manufacturing footprint and bring more American jobs to the states we call home,” CEO Antonio Filosa said in a statement.
Stellantis’ U.S. operations include 34 manufacturing plants, parts distribution centers and research and development sites in 14 states.
Of the 16 million cars that Stellantis produces for sale in the U.S. market, 8 million are made in domestic plants and another 4 million in Canada and Mexico, all with a large number of U.S. components. Another 4 million are imported from Europe and Asia, with virtually no American components.
Seeking a change of direction in the United States, Filosa is also relaunching in the second half of 2025 models that the previous administration rejected two years ago: a new Jeep Cherokee, which will be produced in Mexico and the popular Dodge Charger ICE.
Earlier this year, Stellantis also relaunched the Ram Hemi V8 due to demand from dealers and customers.
In July, the Netherlands-based automaker reported half-year results that included losses of 2.3 billion euros (nearly $2.7 billion). During the period, U.S. shipments fell by nearly a quarter as the automaker reduced imports of foreign-produced vehicles.
Stellantis shares fell sharply in after-hours trading after closing down 4.8% during regular trading on Tuesday.