Automaker Stellantis, the parent company of Chrysler, Dodge, Jeep and Ram, is preparing to invest some $10 billion USD in the U.S. to revitalize its operations in its most strategic market, according to Bloomberg. The official announcement could come within a few weeks.
According to internal sources, about $5 billion in new funds will be added to an equivalent amount already announced earlier this year. The investments, spread over several years, would aim to modernize plants, create new jobs and launch new models, particularly in states like Illinois and Michigan.
A push to restore the image of Jeep and Dodge
CEO Antonio Filosa, who has been in the position since May, wants to restore Jeep to its former glory while rekindling the flame for Dodge, with the possible revival of a V8-powered muscle car. Even the Chrysler brand could benefit from new long-term funds, although those plans remain to be confirmed.
Filosa is thus trying to rebalance Stellantis's global investments, following a period in which predecessor Carlos Tavares favoured low-cost operations in Mexico and Europe, where profitability remains fragile.
A clear message to Washington
The news of new investments comes, of course, in a political context. Several multinational corporations are increasing their American investments to win favour with the U.S. president and mitigate the impact of tariffs. Hyundai, for example, recently increased its U.S. commitments to $26 billion by 2028.
For Stellantis, the new funds could notably be used to restart the idled Belvidere plant in Illinois, where some 1,500 jobs are expected to be restored to produce a new mid-size pickup truck.
Persistent challenges in Europe
While Stellantis redirects its resources to America, European unions are worried. The group, which also owns Fiat and Peugeot, is facing production overcapacity and fierce competition from BYD and other Chinese manufacturers.
Eight European plants are currently on temporary shutdown due to a drop in demand for models like the Alfa Romeo Tonale and Fiat Panda. Antonio Filosa is scheduled to meet with Italian unions on October 20, as pressure mounts for him to respect production promises made to Italy.
A global restructuring underway
The new CEO has already begun a strategic house cleaning, suspending a hydrogen vehicle project with Michelin and Forvia, while considering the sale of Free2move, its car-sharing division. He has also reportedly mandated McKinsey & Co. to redefine the future of Maserati and Alfa Romeo—without, however, planning to sell Maserati.
Despite the turbulence, Stellantis is beginning to see some signs of recovery: its U.S. sales increased in the third quarter, which has reassured investors.