Stellantis to invest $406 mn in Michigan facilities for EV and hybrid development

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Stellantis, the parent company of Chrysler, announced it will invest over $406 million in three Michigan facilities to develop a platform capable of supporting both electric and hybrid vehicles. The move is part of the automaker’s strategy to expand its electric vehicle (EV) and hybrid offerings.

Stellantis will make significant investments in the Sterling Heights Assembly Plant, which will become Stellantis’ first U.S. facility dedicated to building fully electric vehicles as part of its strategy to become a carbon net zero corporation by 2038.

Additionally, the company will retool the Warren Truck Assembly Plant to produce an electrified version of the Jeep Wagoneer and increase funding at the Dundee Engine Plant to support production of its new platform for cars, crossovers, and SUVs.

The Sterling Heights Assembly Plant will receive $235.5 million to produce Stellantis’ first battery-electric light-duty truck, the 2025 Ram 1500 REV, and the new range-extended 2025 Ram 1500 Ramcharger. Both models will be produced alongside internal combustion engine (ICE) vehicles.

This investment will support the plant’s transition to a multi-energy production line, capable of handling ICE, battery-electric, and range-extended vehicles simultaneously. The Ram 1500 REV features a STLA Frame designed for full-size electric vehicles, offering up to 500 miles of range with an optional 229 kWh battery pack. The Ram 1500 Ramcharger boasts 663 horsepower and 615 lb-ft of torque, with features such as vehicle-to-vehicle and vehicle-to-home bi-directional charging.

Additionally, $97.6 million will be invested in the Warren Truck Assembly Plant (WTAP) to retool for the production of an electrified Jeep Wagoneer. This is part of a broader plan to launch four Jeep EV models globally by the end of 2025. The WTAP will build both electrified and ICE versions of the Wagoneer and Grand Wagoneer models.

The Dundee Engine Plant (DEP) will receive over $73 million to upgrade its facilities for assembling and testing battery trays and machining components for the STLA Frame and STLA Large batteries. Production at DEP is set to begin in 2024 for battery trays and in 2026 for the STLA Large architecture components.

Stellantis CEO Carlos Tavares expressed pride in the transformation of the Sterling Heights Assembly Plant, noting that the investments align with Stellantis’ Dare Forward 2030 strategic plan.

Stellantis has committed to spending more than €50 billion ($55.23 billion) over the next decade to achieve its goal of reaching a 100 percent battery electric vehicle (BEV) sales mix for passenger cars in Europe and 50 percent BEV sales for passenger cars and light-duty trucks in the U.S. by 2030. The Michigan investments signal a significant step toward the automaker’s electrification ambitions.

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