Stellantis, the global automaker behind brands like Jeep and Ram, is making significant strides in the electric vehicle (EV) market with a new investment of $406 million aimed at upgrading three Michigan plants.
The investment marks a pivotal move as Stellantis seeks to ramp up its EV production capabilities and fulfill commitments outlined in a new contract with the United Auto Workers (UAW) union.
This investment is not only a strategic shift towards producing more environmentally friendly vehicles but also addresses concerns raised by the UAW, following a lengthy strike last year.
With a clear focus on electric trucks and SUVs, Stellantis is positioning itself to compete in the rapidly evolving auto industry while also maintaining its existing gasoline-powered vehicle production.
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Major Investment in Sterling Heights for Ram EV Production
The bulk of Stellantis’ investment will be directed towards its Sterling Heights assembly plant, located just north of Detroit.
With $235.5 million earmarked for upgrades, this factory will play a critical role in producing battery-powered Ram 1500 pickup trucks.
Production of this much-anticipated electric truck is set to begin later this year, a key milestone for Stellantis as it expands its EV lineup.
The Sterling Heights facility has faced its share of challenges in recent years, particularly with quality control issues highlighted by Stellantis CEO Carlos Tavares.
However, the new investment not only supports the production of the Ram 1500 EV but also enables the plant to manufacture a full-size electric pickup equipped with a range-extending gas-powered generator, demonstrating Stellantis’ commitment to a multi-energy approach.
According to the company’s contract with the UAW, Stellantis has agreed to invest $1.4 billion in the Sterling Heights facility by 2028.
This latest move brings the automaker one step closer to meeting that target and reinforces its pledge to strengthen U.S. manufacturing capabilities.
Upgrades at Warren Truck Plant to Support Jeep Wagoneer EV
In addition to Sterling Heights, Stellantis is also investing $97.6 million in its Warren Truck Plant, located near Detroit.
This facility is being retooled to produce electric versions of the Jeep Wagoneer, a large SUV that is part of Stellantis’ broader push to electrify the iconic Jeep brand.
By the end of next year, the company plans to introduce four Jeep EV models globally, and the electric Wagoneer is central to that strategy.
The Warren Truck Plant, which is slated to receive $600 million in total investments as part of the UAW agreement, is a key site for Stellantis’ future EV production plans.
This facility’s upgrade is expected to bolster the company’s ability to meet the growing demand for electric SUVs, particularly in the lucrative North American market.
Dundee Plant to Focus on EV Battery Trays and Large Vehicle Beams
The third Michigan factory set to benefit from Stellantis’ $406 million investment is its Dundee engine plant, located southwest of Detroit.
Stellantis has allocated $73 million to the Dundee facility, where it will begin assembling, welding, and testing battery trays for future electric vehicles.
This critical component will support the automaker’s EV lineup, ensuring that battery production is streamlined and integrated into its Michigan operations.
Additionally, the Dundee plant will produce front and rear beams for large vehicles, with production slated to begin in 2026.
The battery tray production will start this year, marking a significant step in Stellantis’ effort to localize key EV components and reduce its reliance on external suppliers.
According to the UAW contract, the Dundee plant is expected to receive a total of $770 million in investments.
These upgrades will position the facility as a hub for EV-related production, further solidifying Michigan’s role in the global EV supply chain.
Challenges Ahead: Belvidere Plant Reopening Delayed
Despite Stellantis’ commitment to investing in its Michigan facilities, the company is facing challenges regarding its Belvidere assembly plant in Illinois.
The plant, which was shuttered amid poor sales and unfavorable market conditions, was set to reopen in 2027 under the UAW agreement.
Stellantis had also promised to build a new battery plant and parts warehouse at the site by 2028, creating more than 2,700 jobs.
However, delays in reopening the Belvidere plant have sparked concerns from the UAW. Union President Shawn Fain has hinted at the possibility of a strike if Stellantis fails to meet its contractual obligations.
The company, meanwhile, maintains that it will eventually fulfill its commitments, but no specific date has been set for reopening the plant or commencing battery production.
Tavares Commends Workers, Highlights Focus on Customer Demand
In a statement accompanying the investment announcement, Carlos Tavares praised the workforce at Sterling Heights for their efforts to prepare for electric Ram production in record time.
“With these investments supporting both Jeep and Ram, we’re adding innovations to our Michigan manufacturing footprint to support a multi-energy approach that is laser-focused on customer demand,” he said.
This multi-energy strategy, which involves the production of both gasoline-powered and electric vehicles, is at the heart of Stellantis’ vision for the future.
By investing in EV production while continuing to offer traditional vehicles, the company hopes to cater to a diverse customer base and position itself as a leader in the global automotive market.
Conclusion: Stellantis Positions Michigan as an EV Hub
Stellantis’ $406 million investment in Michigan’s manufacturing sector signals its commitment to the future of electric vehicles and its dedication to maintaining U.S. production.
With major upgrades planned for the Sterling Heights, Warren Truck, and Dundee plants, Stellantis is laying the groundwork for a robust EV lineup that includes the electric Ram 1500 and Jeep Wagoneer.
While challenges remain, particularly regarding the delayed reopening of the Belvidere plant, Stellantis’ investment in Michigan is a promising step toward fulfilling its promises to the UAW and accelerating its EV transition.
As the auto industry continues to shift toward electrification, Stellantis’ multi-energy approach will likely play a crucial role in shaping the company’s success in the years to come.