Stellantis invests $406 million in Michigan factories for electric vehicles

Stellantis has announced a significant investment of $406 million to upgrade three factories in Michigan, aimed at enhancing their capabilities to produce electric vehicles and battery components. This move is part of the company's strategy to diversify its vehicle offerings, which will include both gasoline and electric models. The largest portion of the investment, $235.5 million, will be allocated to the Sterling Heights assembly plant, which is set to manufacture the battery-powered Ram 1500 pickup truck later this year. This plant has faced scrutiny for quality issues, prompting the need for retooling to meet production standards. Additionally, the Warren Truck Plant will receive approximately $97.6 million to facilitate the production of electric versions of the Jeep Wagoneer, with plans to roll out four Jeep EVs globally by the end of next year. The investment aligns with Stellantis's commitment to the United Auto Workers union, which includes a promise of $600 million for the Warren facility. The Dundee engine factory will also benefit from over $73 million to support the assembly and testing of battery trays for future electric vehicles, with production expected to commence this year. The factory is projected to receive a total of $770 million as part of the union agreement. Despite these investments, Stellantis faces challenges, including delays in reopening a shuttered assembly plant in Belvidere, Illinois, which has raised concerns among union leaders about job security for over 2,700 workers. The company has cited unfavorable market conditions for these delays but maintains its commitment to fulfilling its contractual obligations in the future.