Stellantis’ $13B U.S. Revamp Puts Electric Vehicles on the Back Burner

$13 Billion U.S. Investment Plan

Stellantis, the parent company of Chrysler, Jeep, and Ram, announced a $13 billion plan to expand its U.S. manufacturing footprint over the next four years. The investment, directed by the company’s new CEO, will fund five new vehicles and major upgrades to plants across Illinois, Ohio, Michigan, and Indiana. Chris Cordes / Unsplash

Job Creation and Plant Revivals

The automaker confirmed that the plan will generate more than 5,000 new jobs and reopen the Belvidere Assembly Plant in Illinois, previously shuttered during restructuring efforts. The reopening will allow Stellantis to expand production of the Jeep Cherokee and Compass for the U.S. market while also supporting the launch of a new four-cylinder engine. Patrick Oehler/Poughkeepsie Journal / USA TODAY NETWORK via Imagn Images

Limited Focus on Electrification

While previous multibillion-dollar investments from automakers have prioritized electric vehicles, Stellantis’ latest commitment marks a notable shift. Only one of the five planned vehicles will be a range-extended EV — a hybrid model combining a battery with a gasoline generator for additional range — slated for production in 2028 at the Warren Truck Assembly Plant in Michigan. Patrick Oehler/Poughkeepsie Journal / USA TODAY NETWORK via Imagn Images

Expansion of U.S. Production Plans

The same plant will also produce a large, gas-powered SUV. Other projects include a next-generation Dodge Durango set for Detroit in 2029, a new midsize truck to be built in Toledo, Ohio, and the GMET4 EVO four-cylinder engine, which will begin production in 2026 at the company’s Kokomo, Indiana, factory. Jorge Simmons-Valenzuela / Unsplash

CEO’s Statement on Growth and Jobs

Stellantis CEO and North America COO Antonio Filosa emphasized that the initiative is part of a long-term growth strategy aimed at strengthening the company’s U.S. operations. “Accelerating growth in the U.S. has been a top priority since my first day. Success in America is not just good for Stellantis in the U.S. — it makes us stronger everywhere,” Filosa said in a statement.

He added that the investment will “bring more American jobs to the states we call home.” Stellantis / Wikimedia

EV Strategy Scaled Back

The announcement comes amid a broader recalibration of Stellantis’ electrification strategy. In September, the automaker scrapped plans for an electrified Jeep Gladiator and canceled a proposed battery-electric full-size pickup, citing a shift in market priorities. However, Stellantis reaffirmed its commitment to the extended-range Ram 1500 REV, formerly known as the Ramcharger, signaling that hybrid-style solutions may remain part of its U.S. EV portfolio. OWS Photography, CC BY 4.0 https://creativecommons.org/licenses/by/4.0, via Wikimedia Commons