Car giant Stellantis gears up for multi-billion dollar US investment

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Car giant Stellantis has revealed that it is preparing to invest more than $5 billion in the US. This is following the company’s chairman, John Elkann meeting US president Donald Trump before his 2025 inauguration, according to the Financial Times. 

Stellantis was created through a merger between the Peugeot and Fiat groups, and is currently the owner of several car brands including Chrysler, Jeep, Opel, Maserati, and Fiat. 

Antonio Filosa, the North America chief operating officer, said in an employee email sent on Wednesday morning, seen by Euronews: “Last week, in advance of the inauguration, our Chairman John Elkann met with President Trump to share our enthusiasm for his strong commitment to the United States auto industry and all that this means for American jobs and the broader economy.

“John told the President that building on our proud, more than 100-year history in the U.S., we plan to continue that legacy by further strengthening our U.S. manufacturing footprint and providing stability for our great American workforce.

“Our plans, focused on increasing market share and growing sales volume, entail a multibillion-dollar investment in our people, great products, and innovative technology, all here in the U.S.”

These plans include manufacturing a new mid-size pickup truck in Belvidere, Illinois. About 1,500 employees represented by the United Auto Workers (UAW) union will be returning to the Belvidere plant for this project. 

Stellantis has also said that it will be going ahead with its next generation Dodge Durango building plans. This will take place at the company’s Detroit assembly complex, in Michigan. 

The car manufacturer will also be investing in robust product actions for its Jeep Gladiator and Jeep Wrangler models at its Toledo assembly complex. It will also be investing in more technologies for this plant, along with other key production components for its Toledo machining plant. 

Stellantis also announced that it would be investing more in its Kokomo, Indiana operations, in order to manufacture the GMET4 EVO engine. 

This slew of investments by the car maker is expected to be followed by several more US investments by other car manufacturers, as industry leaders focus on improving their relationships with Trump. 

Car makers caught between rising competition and tariff threats

Stellantis’ US investment announcement comes at a time when several car manufacturers are dealing with increasing competition, especially from Chinese rivals, as well as dampened European demand for electric vehicles. In several cases, these Chinese competitors offer cheaper models, with more modern designs, as well as a better range of features. 

Donald Trump has already threatened to impose more tariffs on the EU, China, as well as other countries such as Canada and Mexico. This could potentially spark off a worldwide tariff war that may severely impact carmakers, who often have globally spread out operations. 

Stellantis currently has manufacturing operations in both Mexico and Canada, which could be an issue if the US does go through with implementing a 25% tariff on imports from these countries, as President Trump has threatened. 

However, the company’s wide range of operations, which include hybrid, internal combustion and electric vehicles, is expected to allow it to adjust more smoothly to any new Trump administration policies regarding the car industry. 

Other European car manufacturers such as Volvo and Volkswagen are expected to be the most vulnerable in the continent to any possible Trump administration tariffs.