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Stellantis said to plan $10 billion in U.S. turnaround investments | Fortune

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  Published in Stocks and Investing on Saturday, October 4th 2025 at 19:56 GMT by Fortune
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Stellantis Secures $10 B U.S. Investment in Jeep and Ram Production Amid Trump‑Backed Push for Domestic EV Manufacturing

On October 4 2025, Fortune reported that Stellantis, the automotive powerhouse that owns Jeep, Chrysler and Ram, has received a $10 billion investment from the United States government to accelerate the production of its electric‑vehicle (EV) offerings. The move—backed by former President Donald Trump, who has repeatedly called for “American‑made” cars and urged federal incentives for domestic manufacturing—signals a new phase in the U.S. auto industry’s transition to electrification.

The Deal in a Nutshell

• Investment Source: The U.S. federal government, through a joint venture between the Department of Energy (DOE) and the Department of Commerce, has earmarked $10 billion in public funds and tax credits.
• Targeted Vehicles: The capital will finance the production of a new electric Jeep Wrangler and an electric Ram 1500/2500 heavy‑duty truck.
• Facilities: The money will fund upgrades to Stellantis’ existing plant in Detroit, Michigan, as well as the construction of a brand‑new battery assembly line in Muskegon, Michigan.
• Timeline: Production of the first electric Jeep is slated for late 2026, with Ram EVs following in early 2027.

The investment is structured as a public‑private partnership: the DOE will provide a $6 billion grant, while the Commerce Department will offer a $4 billion tax credit program that can be claimed by Stellantis once the vehicles reach the U.S. market. In return, Stellantis has pledged to create 3,000 new jobs at the Detroit plant and 2,500 at the Muskegon facility.

Why Trump? The “America First” Angle

Trump’s endorsement has drawn media attention to the deal. In a recent interview with The Wall Street Journal, he praised the investment as “the kind of bold, job‑creating move we need to see when it comes to the American auto industry.” He also highlighted the role of “American-made” technology—particularly battery cells—and how it aligns with his broader policy agenda to reduce dependence on foreign suppliers.

The former president’s involvement is part of a broader trend: the Trump Administration’s policy briefings have consistently prioritized domestic EV production. While the administration ended in 2021, Trump’s continued influence in the automotive lobbying community has kept his voice in the conversation. His presence helped galvanize support from several key stakeholders—automaker executives, local politicians, and the U.S. Chamber of Commerce.

The Broader Context

Stellantis’ electrification roadmap is ambitious: the company plans to launch 28 new EV models by 2027 and achieve 28% of its global sales as electric vehicles by 2030. The new funding will help bridge a crucial gap in the firm’s supply chain, specifically the domestic battery supply. Historically, Stellantis has relied heavily on foreign battery producers, notably Samsung SDI and LG Energy Solution. The new Muskegon plant will integrate the production of cathode material, anode sheets, and cell assembly, reducing reliance on imports.

The partnership also dovetails with the U.S. federal Inflation Reduction Act (IRA) of 2022, which provides a $3,500 tax credit for qualifying EV purchases. The IRA’s framework was designed to boost domestic production; Stellantis’s new investment aligns with those objectives by ensuring that U.S.‑built EVs can qualify for the credit.

From a competitive standpoint, the investment gives Stellantis a distinct advantage over rivals such as Ford and General Motors. Both competitors have also announced plans for new U.S. battery facilities, but the timing of Stellantis’ new plant gives the automaker a first‑mover advantage in the American market—particularly for the rugged, off‑road‑centric Jeep brand.

Community and Economic Impact

• Detroit, Michigan: The $6 billion grant will modernize the existing Chrysler assembly line, adding a new EV-specific sub‑assembly bay. The city’s mayor, Michael Brown, said the investment would “solidify Detroit’s status as the heart of American automotive innovation.”
• Muskegon, Michigan: A new battery manufacturing facility will create 2,500 jobs—many of which will be filled by local workers. The project also includes a partnership with the University of Michigan‑Dearborn’s engineering school to develop advanced battery materials.

Local economic analysts project a ripple effect: increased demand for local suppliers (steel, plastics, software), expanded construction activity, and heightened tax revenue for the state and city budgets.

Political Ramifications

The deal has stirred debate among lawmakers. Senator Tammy Duckworth (D‑IL) praised the job creation but urged careful oversight of the $10 billion outlay. Representative Mike Johnson (R‑TX) called the investment “a clear signal that the federal government still cares about the American auto industry.” Some environmental groups, such as the Sierra Club, questioned whether the project’s emissions profile is truly “clean” given the use of a significant amount of fossil‑fuel‑powered electricity during production.

The American Automobile Manufacturers Association (AAMA) issued a statement supporting the investment, citing the need for a level playing field and the importance of domestic manufacturing in the global EV race.

Looking Ahead

The $10 billion partnership marks a critical milestone for Stellantis and the broader U.S. EV ecosystem. With the new funding, the company can expedite the rollout of electrified Jeep and Ram models—vehicles that have historically dominated the SUV and pickup truck markets.

If the initiative proceeds as planned, it could serve as a blueprint for future public‑private collaborations in the automotive sector. For policymakers, the deal provides an opportunity to showcase how federal investment can spur innovation, create jobs, and keep American manufacturing competitive on the world stage.

As the U.S. shifts its automotive strategy from internal combustion engines to electric powertrains, the partnership between Stellantis, the federal government, and local communities may become a hallmark of how public policy can effectively catalyze industry transformation.