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Stellantis said to plan $10 billion in US turnaround investments
Yahoo Financeยท 2025-10-04 19:03
Core Viewpoint - Stellantis NV plans to invest approximately $10 billion in the US to refocus on the market crucial for its profitability, particularly in the Jeep and Ram brands [1][2]. Investment Plans - The company may announce an additional $5 billion investment soon, complementing a similar amount allocated earlier this year [2]. - Investments will target plants in states like Illinois and Michigan, focusing on re-openings, hiring, and new models [2]. Brand Strategy - Stellantis aims to revive the Jeep brand's past success and is considering new investments in Dodge, potentially leading to a new Dodge V8 muscle car, and possibly Chrysler in the long term [3]. - Ongoing discussions indicate that the amount and specific projects may still change [3]. Leadership and Strategic Shift - The new spending strategy reflects the efforts of CEO Antonio Filosa, who took over in May, to recalibrate investments across regions [4]. - Under former CEO Carlos Tavares, the company had shifted production to lower-cost countries and invested heavily in Europe, where demand and profitability are low [4]. Future Evaluations - The CEO is leading a comprehensive evaluation of future investments as part of the company's strategy update and capital markets day planned for next year [5]. Industry Context - Stellantis' investment strategy aligns with broader trends among companies in various industries announcing significant investment plans in the US to gain favor with political leadership and mitigate tariff impacts [6].