Stellantis (STLA) is making its biggest bet yet on the American auto market. The maker of Jeep, Ram, Dodge, and Chrysler vehicles has announced a massive $13 billion investment over the next four years to expand its U.S. manufacturing footprint. Following the news, STLA stock jumped 8% in after-hours trading.
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The move marks the largest single investment in the company’s history and signals a major push to revive its struggling American business. The announcement also follows pressure from President Donald Trump for automakers to invest more domestically.
Importantly, Stellantis said the investment will boost annual finished vehicle production by 50% and will also support 19 refreshed models and updated powertrains through 2029.
“Accelerating growth in the U.S. has been a top priority since my first day. Success in America is not just good for Stellantis in the U.S. — it makes us stronger everywhere,” said CEO Antonio Filosa.
Here’s How Stellantis Will Park the Money
The plan includes the rollout of five all-new vehicles, a new four-cylinder engine program, and more than 5,000 new jobs across plants in Illinois, Ohio, Michigan, and Indiana. Let’s take a detailed look.
- Illinois: Stellantis will spend over $600 million to reopen its Belvidere plant and start making Jeep Cherokee and Compass models, creating 3,300 jobs by 2027.
- Ohio: The company will invest nearly $400 million to move midsize truck production to its Toledo plant and create 900 jobs by 2028.
- Michigan: About $100 million will be spent to upgrade the Warren Truck Assembly Plant for a new EV and large SUV. Another $130 million is assigned to prepare its Detroit plant for producing the Dodge Durango.
- Indiana: Stellantis will invest over $100 million to grow its Kokomo facilities and build a new four-cylinder engine, creating more than 100 jobs starting in 2026.
This marks Stellantis’ biggest push to win back U.S. customers after losing ground due to an aging lineup. It must be noted that the company’s plan includes both electric and gas-powered models, pointing to a balanced strategy that meets changing customer needs and regulations.
Is Stellantis a Strong Buy?
Turning to Wall Street, STLA stock has a Hold consensus rating based on five Buys, 11 Holds, and two Sells assigned in the last three months. At $10.61, the average Stellantis stock price target implies a 7.06% upside potential.
