Stellantis has committed $406 million to upgrading its U.S. Stellantis plants as the company prepares to expand its production of battery-electric vehicles (BEVs) alongside traditional internal combustion engine (ICE) models. This significant investment will be spread across three Michigan facilities, with the primary focus on enhancing the capabilities of the Sterling Heights Assembly Plant, Warren Truck Assembly Plant, and Dundee Engine Plant.
The Sterling Heights Assembly Plant will receive the largest share of the investment—$235.5 million. This facility is set to become the first U.S. plant under Stellantis to produce a fully electric vehicle. It will build the all-electric Ram 1500 Rev, as well as the range-extended 1500 Ramcharger. To support this shift, the plant has been outfitted with a new conveyor system and automated processes designed specifically for BEVs. Retooling efforts have also been made to enable the plant to manufacture both electric and gas-powered trucks on the same production line, providing flexibility for changing market demands. The investment marks a crucial milestone for Stellantis Plants as they transition toward producing more sustainable vehicles.
In addition to Sterling Heights, Stellantis is investing nearly $100 million in the Warren Truck Assembly Plant. This funding will be used to prepare the facility to manufacture the electric Jeep Wagoneer. The plant will have the capability to produce both electric and gasoline-powered versions of the Wagoneer and Grand Wagoneer, which will allow Stellantis to respond efficiently to fluctuating consumer preferences. By adapting the production lines in its Stellantis plants to handle both BEV and ICE models, the automaker is positioning itself to meet the evolving needs of the automotive industry.
The Dundee Engine Plant will see an investment of $73 million, focusing on preparing the plant to produce components for Stellantis’ upcoming electric platforms. Specifically, the Dundee facility will build battery trays for the STLA Frame platform and front and rear beams for the STLA Large architecture. These components will play a critical role in Stellantis’ future electric vehicle lineup. Additionally, the plant will continue producing two new combustion engines, including a 1.6-liter inline-four engine that could be used in future hybrid-electric vehicles. This move further highlights the company’s commitment to maintaining a balance between ICE and BEV production in its Stellantis plants.
As the automotive industry shifts toward electrification, Stellantis faces important decisions about how to navigate this transformation. The company manages 14 brands following the merger of PSA Group and Fiat Chrysler Automobiles in 2021 and has set a decade-long timeline for each brand to prove its viability. While sales in the U.S. have seen some declines, Stellantis remains focused on charting a course for the future. The significant investment in U.S. Stellantis plants is a strong indicator that the company is committed to adapting to the changing landscape of the automotive market, with new products expected to emerge as part of this evolution.
Stellantis’ investments in its Michigan plants are part of a broader strategy to embrace flexibility, allowing the company to build both electric and gas-powered vehicles on the same lines. This approach will enable Stellantis Plants to remain competitive in a rapidly changing industry, where consumer preferences and regulatory demands are increasingly focused on sustainability and innovation.
