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Wall Street Breakfast Podcast: Stellantis Bets On U.S. Production
Seeking Alphaยท2025-10-15 10:53

Company Investment - Stellantis (NYSE: STLA) announced a historic $13 billion investment over the next four years to enhance its manufacturing capabilities in the U.S. [3] - This investment will support the production of five new vehicles and aims to increase overall production by 50% compared to current levels, along with introducing 19 refreshed products and updated powertrains by 2029 [3][4]. Specific Allocations - The investment includes $600 million to reopen the Belvidere Assembly Plant for Jeep production, $400 million to upgrade the Toledo Assembly Complex for Wrangler and Gladiator models, and additional funding for the Warren Truck plant to develop a new range-extended EV and ICE SUV [5]. - There will also be investments in Kokomo, Indiana, to produce the GMET4 EVO engine, which will help mitigate approximately $1.74 billion in tariff costs on affected vehicles and components [5]. Market Reaction - Following the announcement, Stellantis shares saw a premarket increase of 0.4% after previously closing over 2.5% lower, with a peak increase of 5% noted in premarket trading [6].