Stellantis (NYSE:STLA), the parent company of brands like Jeep, Dodge, and Chrysler, plans to invest about $10 billion in the United States as part of a sweeping effort to regain its footing in its most profitable market.
The automaker, known for its Jeep SUVs and Ram pickups, is preparing to channel billions into U.S. manufacturing, potentially reopening plants, hiring workers, and rolling out new models across key states such as Illinois and Michigan.
Bloomberg reported that the company may announce roughly $5 billion in new funding in the coming weeks, on top of a similar amount allocated earlier this year, citing unnamed sources familiar with the matter.
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The initiative marks CEO Antonio Filosa’s push to refocus on the U.S. market after years of expansion in Europe and lower-cost regions like Mexico under former CEO Carlos Tavares.
Filosa, who took over in May, aims to restore Jeep’s dominance, invest in Dodge, possibly with a new V8 muscle car, and explore a long-term revival of Chrysler, according to the report.
Benzinga reached out to Stellantis investor relations for their take on the story and is awaiting their response.
Stellantis’ stock has tanked 18% year-to-date as it grappled with dismal financial results and leadership changes. Challenges with new model launches and weaker-than-expected demand for electric vehicles (EVs) led to lower shipments and market share losses, particularly in the U.S. and Italy.
Stellantis has paid $190.6 million in fines for failing to meet U.S. fuel economy standards for its 2019 and 2020 model year vehicles. The fines are the latest in a series of penalties the company has faced for its lineup of less fuel-efficient vehicles.
The penalties, which are part of a larger sum of over $773 million paid by the company since 2018, come as the government has shifted its approach to vehicle emissions.
The Trump administration has been taking steps to relax emissions regulations and promote internal-combustion-engine (ICE) vehicles.
Stellantis voiced support for President Donald Trump’s tariff strategy, even as the policy pressures the automaker’s bottom line.
CEO Antonio Filosa told investors during the company’s second-quarter earnings call that Stellantis “understands and supports” the administration’s broader goal to boost U.S. job creation and manufacturing.
The comments came as Stellantis reported a 13% revenue drop and projected an additional $1.7 billion tariff hit in the second half of 2025.
Despite the financial strain, Filosa said the company is in active talks with officials in the U.S., Mexico, and Canada to address the impact and push for recognition of the high U.S. content in its vehicles.
Filosa emphasized that while about 4 million vehicles sold annually are built in Mexico and Canada, many rely heavily on U.S.-made components, reflecting significant domestic value.
He welcomed the Trump administration’s flexibility in its tariff framework for North American partners, noting that it supports Stellantis’ strategy to strengthen local production.
Still, the company expects over $2.7 billion in losses for the first half of 2025 as tariffs reshape the auto industry and global supply chains, underscoring how Trump’s trade measures are forcing automakers like Stellantis to recalibrate their U.S. operations.
Price Action: STLA shares were trading higher by 0.75% to $10.81 premarket at last check Monday.
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