Stellantis is poised to allocate around $10bn investment into its US operations, Bloomberg reported, citing sources.
The proposed investment is part of a refocus on the US market, which is deemed crucial for the company’s profitability.
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According to sources, the automotive giant, responsible for the production of Jeep SUVs and Ram pickups, is expected to announce a $5bn investment, supplementing an earlier commitment of a similar amount.
The funds are anticipated to be distributed over several years and may be directed towards plant enhancements, employment opportunities, and the development of new vehicle models in Michigan and Illinois states, the sources added.
According to some people, plans under consideration include revitalising the Jeep brand and potentially investing in the Dodge brand, which could lead to the introduction of a new Dodge V8 muscle car.
Discussions about the investment are ongoing, with no final decisions made, and the details of the investment are subject to change.
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By GlobalDataAccording to the report, this initiative reflects the new direction under CEO Antonio Filosa, who assumed his role this May and has been re-evaluating the company’s investment strategies across different regions.
The carmaker had previously focused on shifting production to lower-cost countries and investing in the European market under former CEO Carlos Tavares.
The investment strategy aligns with a broader trend of companies investing heavily in the US economy, which may also be a strategic move to navigate tariffs and align with political expectations, the report added.
Chairman John Elkann has previously discussed American investment plans with US President Donald Trump, including a commitment to produce a new midsize pickup truck in Illinois and re-employ around 1,500 workers.
The investment could also be a positive development for the United Auto Workers union, which has engaged in discussions with Stellantis.
The company is said to be concurrently lobbying the US administration to address potential tariffs that could affect its Mexico-produced Ram pickups.
Amidst challenges such as market share losses in the US and Europe and the impact of tariffs, Filosa is said to be working to stabilise the company.
The shift towards the US market has raised concerns among European unions, especially as Stellantis faces “overcapacity” and competition from Chinese manufacturers.
With a meeting scheduled with Italian labour union representatives and recent production adjustments in France and Italy, Filosa is under pressure to uphold commitments made in a production plan for Italy.
Recently, Stellantis revealed plans to temporarily cease production at its manufacturing sites in France and Italy, and announced the appointment of Joao Laranjo as chief financial officer and member of the Stellantis Leadership Team.
