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Stellantis says it will invest $13B to expand its US operations, adding more than 5,000 jobs
Yahoo Finance· 2025-10-14 22:37
Core Insights - Stellantis plans to invest $13 billion over the next four years to enhance its manufacturing capacity in the U.S., aiming to increase domestic vehicle production by 50% and create over 5,000 jobs [1][2] Investment and Production Expansion - The investment will facilitate the introduction of five new vehicles, including a Dodge Durango in Detroit and a midsize truck in Toledo, Ohio, with new jobs distributed across Illinois, Ohio, Michigan, and Indiana [2] - This investment marks the largest in the company's history and is expected to strengthen Stellantis' manufacturing footprint in the U.S. [4] Strategic Response to Costs - Stellantis aims to mitigate the anticipated €1.5 billion ($1.7 billion) cost of tariffs on vehicles produced in Canada and Mexico by enhancing North American profitability through new model launches, including a new Jeep Cherokee and a refreshed Dodge Charger [3][6] - The company plans to launch 19 refreshed products across all U.S. assembly plants and update powertrains through 2029 [3] Current Operations and Market Position - Stellantis operates 34 manufacturing plants, parts distribution centers, and R&D sites across 14 states in the U.S. [4] - Of the 16 million cars produced for the U.S. market, 8 million are manufactured domestically, while 4 million are produced in Canada and Mexico, and another 4 million are imported from Europe and Asia [5] Financial Performance - In July, Stellantis reported a loss of €2.3 billion (nearly $2.7 billion) for the first half of the year, with U.S. shipments down nearly 25% due to reduced imports of vehicles produced abroad [7]