The multi-brand car manufacturer Stellantis will invest $13 billion (€11.2 billion) to expand its U.S. operations and boost domestic production over the next four years. It will focus primarily on new combustion-engine (ICE) models.
New Stellantis CEO Antonio Filosa described the plan as the most significant single investment in the company’s 100-year history. With the $13 billion, Stellantis aims to expand U.S. production by 50%, launch five completely new models and 19 product updates, and create more than 5,000 new jobs, mainly in the Midwest.
Back to ICE
According to the announcement, a new four-cylinder engine will be produced at the Kokomo components plant in Indiana, while a new mid-size truck will be built in Toledo, Ohio. The Jeep factory in Belvidere, Illinois, which closed in 2023, will reopen to manufacture two combustion-engine Jeep models.
In Michigan, the next-generation Dodge Durango will be assembled in Detroit, and a completely new large SUV will be produced in Warren. The latter is expected to be offered as both a combustion-engine model and a range-extended EV, making it the only vehicle in the announcement to mention partial electrification. Stellantis has not announced any new fully electric models.
Under former US President Joe Biden, carmakers had to meet strict CO₂ requirements, which led to a reduction in combustion models and the introduction of new electric vehicles. Jeep had also shut down its Belvidere plant, which built the Cherokee and Compass for the US market.
The discontinuation of these models contributed to Stellantis’ sales decline in the United States in 2024. The company now plans to restart production at Belvidere in 2027, investing around $600 million to revive these model lines and create around 3,300 jobs.
The next-generation Jeep Compass was initially scheduled to be built in Brampton, Canada, but renovation work there halted in February.
At the Toledo Assembly Complex, where Jeep currently produces the Wrangler and Gladiator models, both due for updates among the 19 announced product refreshes, Stellantis will invest $400 million to build “an all-new midsize truck” from 2028. The company has not yet disclosed which brand name the new vehicle will carry.
Electrification plans stay vague
Few details have been released about the large SUV with a range-extender system. Stellantis has not confirmed which brand it will represent, but production is planned to begin in 2028 at the Warren Truck Assembly Plant. The $100 million investment there refers only to the plant itself, not to vehicle development. The site currently builds the Jeep Wagoneer and Grand Wagoneer.
As part of its multi-energy strategy, Stellantis has designed its STLA platforms to accommodate a range of powertrains, from petrol engines to battery-electric drivetrains. The impact on vehicle plants is therefore expected to be limited.
However, suppliers, component plants, and battery joint ventures could be more affected. Stellantis operates the StarPlus Energy joint venture with Samsung SDI, which is building a cell factory in Kokomo, and NextStar Energy with LG Energy Solution, which is constructing a battery facility in Windsor, Canada.
Turning towards the U.S.
Antonio Filosa, who became CEO of Stellantis in June and also serves as COO for North America, said: “Growth in the U.S. has been a top priority since my first day.” He added: “This investment in the U.S., the single largest in the company’s history, will drive our growth, strengthen our manufacturing footprint, and bring more American jobs to the states we call home.”
“As we begin our next 100 years, we are putting the customer at the center of our strategy, expanding our vehicle offerings and giving them the freedom to choose the products they want and love.”
Stellantis operates 34 plants, parts distribution centers, and research and development facilities across 14 U.S. states, employing more than 48,000 people. The company also works with 2,600 dealers and 2,300 suppliers “in thousands of communities across the country,” it boasts.
Trump’s tariff threats have also influenced the political shift at Stellantis. Stellantis announced earlier that the new tariffs would cost the company around $1.7 billion every year.
Still, after Tavares’s ousting, it was soon clear that the group would turn to the United States again, its most important market and the cash cow during the former Portuguese CEO’s glory years.
Abandoning Europe?
In Europe, the group seems to move in the opposite direction. Stellantis recently halted production temporarily in eight factories in France and Italy, and is one of the leading (half) European manufacturers insisting on softening the CO2 emissions regulations in the European Union.
The massive investments in the U.S. risk jeopardizing those in the European Union. However, the importance of the two geographical zones is almost identical. In the first six months of 2025, Stellantis recorded €29.2 billion in turnover in Europe, compared with €28.2 billion in the U.S.
The operational margin turned around zero on the old continent; in the States, there was approximately €1 billion in losses. More importantly, the market share of Stellantis in Europe still turns around 17%, where it is only 7% in the United States.
Recently, Filosa has also completely remodeled his top management, and it has become clear that the French or ‘Peugeot influence’ has diminished. The Italian and also the South American influences have surely increased: the American Doug Ostermann was replaced by Brazilian Joao Laranjo as the group’s CFO.
Furthermore, two French top managers were replaced by Italians: Arnaud Deboeuf has left the company and is replaced by Francesco Ciancia, and Jean-Philippe Imparato has been succeeded by Emanuele Cappellano and has received the directorship of troubled Maserati as a rather poisoned chalice.
We will still have to wait several months to fully understand Filosa’s vision for the future. The group’s strategic plan, scheduled for presentation in the first quarter of 2026, has been postponed to the second quarter. Wait and see.
