EVs take a backseat in Stellantis' $13B US investment plan

TechCrunch
TechCrunch
2M ago
37 views
Stellantis announced a $13 billion investment to enhance U.S. manufacturing, creating over 5,000 jobs. This matters as it signals a shift away from electrification towards traditional vehicle production.
EVs take a backseat in Stellantis' $13B US investment plan
A What happened
Stellantis, the parent company of Chrysler, Jeep, and Ram, has unveiled a $13 billion investment plan aimed at bolstering its U.S. manufacturing capabilities over the next four years. This initiative will lead to the development of five new vehicles by 2029 and the creation of more than 5,000 jobs across several states, including Illinois, Ohio, Michigan, and Indiana. Key components of the investment include reopening the Belvidere Assembly Plant to expand production of the Jeep Cherokee and Compass, as well as introducing a new four-cylinder engine. Interestingly, this investment does not heavily focus on electrification, with only one of the new vehicles being a range-extended electric vehicle. Stellantis CEO Antonio Filosa emphasized that this growth strategy is crucial for the company's success in the U.S. market and its overall strength.

Key insights

  • 1

    Job Creation: The investment will create over 5,000 jobs in the U.S.

  • 2

    Shift from Electrification: Stellantis is reducing its focus on electric vehicles in this investment.

  • 3

    New Vehicle Development: Five new vehicles will be developed by 2029.

Takeaways

Stellantis' $13 billion investment reflects a strategic pivot towards traditional vehicle production while still incorporating some electric vehicle elements, indicating a complex approach to future automotive trends.

Topics

Business & Markets Economy