Stellantis to Boost US Output 50% with $13B Plan
The investment aims to create 5,000 jobs and launch five new vehicles, though Wall Street remains cautious amid market headwinds.
Automaker Stellantis is launching a major capital offensive in its most profitable region, announcing a $13 billion investment to overhaul its U.S. operations. The four-year plan is designed to increase its domestic vehicle production by 50% and signals a decisive strategic pivot back towards the American market.
The company, which owns brands like Jeep, Ram, and Dodge, detailed that the historic investment will fund the launch of five new vehicle models and create over 5,000 new jobs across plants in Illinois, Ohio, Michigan, and Indiana. Key projects include a $600 million investment to reopen the Belvidere, Illinois plant and nearly $400 million to prepare its Toledo, Ohio, complex for a new midsize truck, .
This aggressive push into its core market is seen by many as a necessary course correction. Under new CEO Antonio Filosa, Stellantis is shifting focus back to North America after a period of declining market share and strategic delays. The move is intended to that have been facing increased competition and a stale product lineup.
However, Wall Street's reaction to the ambitious plan has been lukewarm, reflecting the significant challenges the automaker faces. While analysts at Berenberg recently upgraded the stock to a 'Buy' on an improving outlook, others remain skeptical. Moody's recently downgraded the company's outlook to 'negative,' citing weak operating performance and the impact of U.S. import tariffs that could . These tariffs represent a potential €1.5 billion headwind for 2025.
Investors are weighing the potential of this manufacturing overhaul against a backdrop of macroeconomic uncertainty. The company has also postponed the release of its next major strategic plan until the first half of 2026, a move that analysts at Barclays noted has limited visibility on future earnings and cash flow. For Stellantis, this $13 billion wager on American manufacturing represents a critical effort to secure its future, but its success will depend on navigating considerable market and regulatory risks.