Jeep and Ram manufacturer Stellantis has revealed plans to invest $406 million in retooling three Michigan factories to manufacture electric vehicles and battery components. This investment is part of the company’s strategy to produce vehicles powered by both gasoline and batteries. The move also aims to fulfill commitments made in a contract ratified by the United Auto Workers union after a prolonged strike last fall, addressing concerns about Stellantis’ dedication to investing in U.S. factories.
The majority of the investment, $235.5 million, will go towards upgrading an assembly plant in Sterling Heights, Michigan, to produce the battery-powered Ram 1500 pickup truck, scheduled to begin production later this year. This plant will also manufacture a full-size electric pickup integrated with a gas-powered generator to extend its range. Stellantis had previously agreed in the union contract to invest $1.4 billion in the Sterling Heights facility by April 2028.
Additionally, around $97.6 million will be allocated to the Warren Truck Plant to enable the production of electric versions of the Jeep Wagoneer SUV, among the four Jeep electric vehicles planned for global production by the end of next year. The agreement stipulates that approximately $600 million will be invested in the Warren Truck facility.
Furthermore, an engine factory in Dundee, Michigan, will receive over $73 million for the assembly, welding, and testing of battery trays for future electric vehicles, as well as manufacturing front and rear beams for large vehicles. Stellantis is set to commence battery tray production this year and beam production in 2026. Per the contract, the Dundee factory is slated to receive $770 million in total investment.
Concerns have been raised by Union President Shawn Fain regarding delays in the commitment to reopen the Belvidere assembly plant in Illinois in 2027 and establish a new battery plant in 2028, jeopardizing over 2,700 jobs. Stellantis attributes these delays to challenging market conditions but assures the company’s intent to fulfill these commitments in due course.
Although specific timelines for restarting the factory, opening the new battery plant, and a new parts warehouse remain undisclosed, these were part of the agreement that concluded the UAW’s strike against Stellantis last year, affecting over 2,700 jobs. A representative from the union declined to comment on the recent announcement made by the company.
CEO Carlos Tavares expressed his gratitude to the workforce at Sterling Heights for swiftly preparing to commence production of the electric Ram. He emphasized the importance of these investments in supporting both Jeep and Ram, enhancing Michigan’s manufacturing capabilities to cater to evolving customer preferences across various energy sources.
