Stellantis, the maker of Jeep, announced a record $13 billion investment in the US to offset the costs of the tariffs

Stellantis, the global manufacturer behind brands such as Jeep, Dodge, Chrysler and Fiat, announced a record $13 billion investment in the United States aimed at strengthening its production capacity in the country, boosting the manufacturing industry, and reducing the economic impact of the tariffs imposed by the Trump administration.

As reported by the company, the plan, which will run until the end of the decade, contemplates the launch of up to five new vehicles and a four-cylinder engine, along with the generation of more than 5,000 direct jobs at plants in Michigan, Indiana, Illinois, and Ohio.

According to the company, suppliers providing components for those models could create up to 20,000 additional jobs.

“The most important and relevant objective that we have with this investment is to grow in this market,” Stellantis CEO, Antonio Filosa, said in an interview with The Wall Street Journal.

The WSJ explained that the strategy behind the multimillion-dollar investment aims to mitigate the costs associated with tariffs on vehicles and auto parts, which could amount to up to $1.5 billion annually for the company. Stellantis, based in the Netherlands, still relies heavily on the North American market, which generates most of its profits.

The company also explained that part of the investment will be used to reopen the Belvidere, Illinois, plant, which is currently inactive, to produce the Jeep Cherokee and Compass models in the U.S. territory, which are currently assembled in Mexico. Production is scheduled for 2028, with an initial investment of $600 million.

While the group scrapped the idea of launching some long-awaited electric models, such as the Ram electric pickup, Stellantis already has new hybrid and combustion models ready to be manufactured in Detroit, which will generate about 900 additional jobs. The plan includes the modernization of a plant in that city to manufacture the Dodge Durango starting in 2029, with an investment of $130 million, the WSJ reported.

The automotive group, which emerged in 2021 from the merger between Fiat Chrysler Automobiles and France's PSA Group, is immersed in a commercial rebuilding process after years of falling sales of its flagship Jeep brand, highly valued in the US.

“Accelerating growth in the U.S. has been a top priority since my first day,” Filosa said. “Success in America is not just good for Stellantis in the U. S.—it makes us stronger everywhere.”

Stellantis' announcement comes against a backdrop of heightened trade tensions following Washington's imposition of new tariffs on cars and heavy trucks, which will take effect on November 1.

With this bet, the Jeep manufacturer aims to regain lost ground in the U.S. market and strengthen its position against rivals such as Ford and General Motors, at a time when the sector faces high costs, technological transition and intense competition for local production.