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Stellantis, the owner of Chrysler and Fiat brands, is planning to invest more than $5bn in the US in a deal revealed days after its chair John Elkann met Donald Trump ahead of the US president’s inauguration.
In an email to staff seen by the Financial Times, Stellantis’s head of US operations Antonio Filosa said the investments would be made in sites across the US, in Illinois, Michigan, Ohio and Indiana.
Elkann told Trump that Stellantis would strengthen its US manufacturing footprint, “providing stability for our great American workforce”, the email sent to Stellantis US employees on Wednesday stated.
The plans include a new mid-size pick-up truck in Belvidere, Illinois, investments in a site in Detroit building a new Dodge car and in Jeep brands at its Toledo site in Ohio, as well as investments in facilities to make an engine used in Stellantis vehicles in Kokomo, Indiana.
Filosa said the plans “entail a multibillion-dollar investment in our people, great products, and innovative technology, all here in the US”.
The company, formed by a merger between the Fiat and Peugeot groups, makes a range of brands including Fiat Chrysler and Jeep vehicles.
The plans come as European carmakers assess how to tackle the prospect of US tariffs on imports from Europe.
Stellantis also has a significant manufacturing presence in Canada and Mexico, which are threatened by the prospect of Trump imposing 25 per cent tariffs on the US’s neighbours.
Some 40 per cent of its vehicles sold in the US are manufactured in the two countries, according to Moody’s.
A report from the credit rating agency on Tuesday said Stellantis, Volkswagen and Volvo cars were the most exposed European carmakers to new potential tariffs from the Trump administration.
Stellantis said it was “focused on increasing market share and growing sales volume” in the country, in its email. The plans have been shared with the United Auto Workers union, which represents employees in the sector.
The announcement comes more than a month after former chief executive Carlos Tavares departed the company, after disagreements with the board.
Elkann has since met governments in Italy and France, as well as the European Commission, as he seeks to rebuild relations with stakeholders in the carmaker.
Last month, the company sought to improve relations with Italy’s government, which had deteriorated under Tavares, pledging to invest €2bn in the country and increase car production.
The US announcement comes after a challenging period for Stellantis and other carmakers, which have been hit by a slowdown in demand for its cars and slowing growth in electric vehicle sales.
The company issued a profit warning in September and shares are down 50 per cent since a peak last March, with investors yet to be convinced that Stellantis has turned a corner.
