Stellantis to pour €11bn into US expansion to avoid tariff-induced losses

Stellantis says it will invest $13 billion (€11.17bn) over the next four years to expand its manufacturing capacity in the United States, a move the carmaker says will lift its domestic vehicle output by 50% and create more than 5,000 jobs.

The world’s fourth-largest carmaker said on Tuesday the investment will support the launch of five new models, including a Dodge Durango to be built in Detroit and a mid-size truck to be assembled in Toledo, Ohio.

The new jobs will be spread across plants in Illinois, Ohio, Michigan and Indiana.

Stellantis, formed four and a half years ago from the merger of Fiat Chrysler and PSA Peugeot, hopes to offset some of the expected €1.5bn cost of tariffs this year on cars produced in Canada and Mexico by boosting North American profitability with new model launches such as the revived Jeep Cherokee.

The new products will come on top of 19 ‘refreshed’ models across all US assembly plants planned through 2029, the company said.

“This investment in the US — the single largest in the company’s history — will drive our growth, strengthen our manufacturing footprint and bring more American jobs to the states we call home,” chief executive Antonio Filosa said in a statement.

Stellantis’ US operations include 34 manufacturing plants, parts distribution centres, and research and development sites across 14 states.

Of the 16 million cars Stellantis produces for sale in the US market, 8 million are made in domestic plants and another 4 million in Canada and Mexico — all with a high proportion of US components. A further 4 million are imported from Europe and Asia, with virtually no US components.

In pursuit of a US turnaround, Filosa is also relaunching in the second half of 2025 models that previous management scrapped two years ago, including a new Jeep Cherokee, which will be built in Mexico, and the popular ICE (internal combustion engine) Dodge Charger.

Earlier this year, Stellantis also brought back the Ram Hemi V8 in response to dealer and customer demand.

In July, the Netherlands-based group reported half-year results that included losses of €2.3bn. During the period, US shipments fell by nearly a quarter as the carmaker reduced imports of vehicles produced abroad.