Stellantis invests $10bn in US manufacturing, reports say, while tariff negotiations continue
New CEO Antonio Filosa is reportedly looking to localise US manufacturing while tariff discussions with the US government continue.
Antonio Filosa, CEO of Stellantis since May this year, is planning an investment of $10 billion in US manufacturing, according to reports citing sources close to the matter.
The move would mirror other OEMs who are attempting to negotiate with the US government on tariffs, including VW Group which is in advanced talks with the US government about making substantial investments in the US as part of its ongoing negotiations for favourable tariffs.
While not yet confirmed by Stellantis, the strategy is reported to comprise roughly $5bn in fresh capital atop a similar sum earmarked earlier this year, according to sources familiar with the deliberations. A Stellantis spokesperson told Automotive Logistics: "As part of the preparations for the company's strategy update and Capital Markets Day next year, the CEO is leading a thorough evaluation of all future investments. This process is ongoing."
These investments, spanning several years, would flow into facilities across states including Illinois and Michigan, encompassing plant reopenings, workforce expansion and new model development.
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Tariff navigation and political calculation
The investment announcement's timing intersects with intensive lobbying efforts as Stellantis seeks to secure waivers or modifications to 25% tariffs on medium and heavy-duty Ram pickups manufactured in Mexico. The carmaker expects the tariffs to cause a net loss of €2.3bn, according to its preliminary and unaudited financials for the first half of 2025. At the time, its chief financial officer Doug Osterman ,said on an investor call that tariffs had a net impact of approximately €330m in the first half of the year. “That’s really consistent with the disclosed estimate I made of a €1.15bn tariff impact, as we’ll see more impact in the second half of the year,” he said.
The OEM has been vocal about the impacts of the tariffs since they were first implemented, taking part in North America’s ‘Big Three’ talks with the US president to ask for exemptions for carmakers back in March. The talks were partially successful, with Trump granting a one-month exemption for carmakers that complied with the terms of the USMCA. The move was welcomed by the American Automotive Policy Council, a trade group representing Stellantis, Ford and GM. The carmaker then took part in a meeting with the European Commission alongside representatives from BMW and VW Group which eventually led to a proposal to introduce trade countermeasures against the US’ steel and aluminium tariffs (although the bloc then put a pause on this action in early August).
This dynamic extends industry-wide, with Hyundai, for example, announcing in August it would increase American investment by $5 billion to reach $26 billion through 2028. The pattern suggests political pressures and tariff concerns are reshaping global manufacturing geography more fundamentally than would occur through purely economic optimisation.
The proposed allocation marks a striking departure from the approach of Filosa's predecessor, Carlos Tavares, whose tenure emphasised aggressive migration of production and engineering operations to lower-cost jurisdictions such as Mexico whilst simultaneously directing substantial capital towards Europe. That regional focus proved problematic as European automotive demand weakened and profitability eroded, even as the continent grappled with manufacturing overcapacity exacerbated by an influx of competitively priced Chinese vehicles.
The Belvidere commitment and labour relations
Central to Filosa's American strategy stands the idled Belvidere assembly facility in Illinois, where Stellantis has pledged to restore approximately 1,500 jobs through production of a new midsize pickup vehicle. The commitment to reopen the shuttered plant by 2027 forms part of agreements reached with the United Auto Workers, whose relationship with the manufacturer had grown increasingly strained over unfulfilled investment promises.
The Belvidere reopening carries significance beyond its immediate employment impact. It represents a tangible demonstration of manufacturing commitment in an environment where Chairman John Elkann has previously met President Donald Trump to discuss American investment plans. Such visibility matters when the administration wields tariff policy as an industrial tool and when maintaining constructive relationships with organised labour proves essential to operational stability.
The European dilemma
The American investment surge unfolds against troubling European developments, where Stellantis has temporarily paused production at eight facilities amid weak demand for models including the Alfa Romeo Tonale and Fiat Panda. The automaker confronts the same overcapacity challenge afflicting rivals as Chinese manufacturers expand European presence with attractively priced vehicles that undercut local production economics.
Filosa has begun withdrawing support from certain European initiatives, including a hydrogen vehicle joint venture with Michelin and Forvia. The company is also reportedly exploring sale of its Free2move car-sharing operation and has retained McKinsey for strategic advice regarding Maserati and Alfa Romeo, though it maintains no plans exist to divest Maserati.
The European situation creates inevitable tension with labour representatives, who view the American investment pivot with alarm. Filosa is scheduled to meet Italian union representatives on 20 October as concerns mount regarding potential plant closures, notwithstanding ambitious production commitments the previous management made for Italy. The political sensitivity cannot be overstated given Stellantis's significance to Italian industrial employment and the Agnelli family's prominent position in Italian business life.
The path forward
Filosa inherits an organisation requiring stabilisation across multiple dimensions simultaneously. Market share demands recovery in both America and Europe. Manufacturing footprint needs rationalisation to match demand patterns. Brand equity requires rehabilitation through compelling products. Labour relations necessitate repair, and profitability must improve sufficiently to fund the transition. All this whilst navigating unprecedented policy volatility and intensifying competition from Chinese manufacturers.
The $10bn American investment demonstrates a substantial commitment of capital and strategic focus. Whether it proves sufficient to achieve turnaround objectives depends on execution quality, product reception and competitive responses. What remains clear is that global automotive manufacturing continues recalibrating at a pace that renders incremental adjustment inadequate. Stellantis is placing a considerable wager that concentrating resources on North American manufacturing will position it favourably as this transformation unfolds.
The OEM’s strategy update and capital markets day, planned for next year, will offer greater clarity regarding long-term direction.
