Stellantis Wise Investment Of $406 Million In EV


Stellantis, a global automotive leader, has announced over $406 million in investments across three key Michigan facilities as part of its commitment to a multi-energy strategy. These investments will focus on producing electric and hybrid vehicles, building on Stellantis’ competitive advantage in electrification.

Retooling of Sterling Heights Assembly Plant for EV Ram 1500 models
Electrified Jeep, Wagoneer production at Warren Truck Assembly Plant
Dundee Engine Plant expansion for battery tray and beam production

Sterling Heights Assembly Plant (SHAP) to Lead Electric Vehicle Production

The Sterling Heights Assembly Plant (SHAP) is set to become Stellantis’ first U.S. plant to produce a fully electric vehicle with an investment of $235.5 million. The plant will manufacture the highly anticipated Ram 1500 REV, a battery-electric light-duty pickup truck, with the range-extended 2025 Ram 1500 Ramcharger.

The Ram 1500 REV, first showcased at the 2023 New York Auto Show, will be available in late 2024. This vehicle is built on the innovative STLA Frame architecture, designed specifically for electric vehicles. It offers two battery options: a 229 kWh pack with up to 500 miles of range and a 168 kWh pack providing 350 miles of range. The Ram 1500 Ramcharger, with its 663 horsepower and a towing capacity of 14,000 lbs, boasts an impressive 0-60 mph in 4 seconds.

Stellantis
EV Ram 1500 Image for Reference

The SHAP retooling was completed ahead of schedule, thanks to the teamwork between Stellantis and its suppliers. This allowed the plant to transition quickly, enabling production of electric, range-extended, and internal combustion engine (ICE) models on a single assembly line.

Warren Truck Assembly Plant (WTAP)

Stellantis will invest $97.6 million in the Warren Truck Assembly Plant (WTAP) to support the production of electrified Jeep® Wagoneer models. This investment is part of Jeep’s plan to launch four electrified models by 2025. The Wagoneer models will be built alongside their ICE counterparts, including the Wagoneer L, Grand Wagoneer, and Grand Wagoneer L. This multi-energy production capability will allow the plant to adapt to various electrification scenarios.

Dundee Engine Plant (DEP)

The Dundee Engine Plant will receive over $73 million to support battery tray production and beam machining for the STLA Frame and STLA Large architectures. This investment will further enhance Stellantis’ electrification capabilities. The plant will continue to produce the GME-T4 EVO engine, set to launch later this year, and a new 1.6-liter I-4 turbocharged engine designed for hybrid-electric applications launching in 2025.

Driving Towards the Dare Forward 2030 Plan

These investments are crucial to Stellantis’ Dare Forward 2030 plan, a comprehensive strategy aimed at achieving a 100% BEV (Battery Electric Vehicle) sales mix in Europe and 50% in the U.S. by 2030. The company is making strides to secure 400 GWh of battery capacity by 2030, supported by a growing number of battery plants in North America and Europe. Stellantis is also on track to become a carbon net-zero corporation by 2038, targeting minimal compensation for any remaining emissions.

Carlos Tavares, Stellantis CEO, emphasized the importance of these investments, saying, “Sterling Heights Assembly has performed an incredible transformation in record time. Gearing up to build our first-ever Ram electric truck and its range-extended version in Michigan is a significant moment of pride. These investments are key to our multi-energy strategy, allowing us to meet customer demand with a wide range of powertrain options.”

Conclusion

Stellantis’ $406 million investment in Michigan facilities demonstrates the company’s commitment to a multi-energy future that accommodates both electric and internal combustion engines. These advancements position Stellantis to lead the market in electrification and clean mobility, in line with its Dare Forward 2030 vision. The Ram 1500 REV and electrified Jeep Wagoneer represent just the beginning of Stellantis’ journey toward a sustainable automotive future.

Stellantis N.V. is a global automaker and mobility provider, renowned for its portfolio of iconic brands such as Jeep, Ram, Dodge, FIAT, Alfa Romeo, and more. The company is dedicated to providing clean, safe, affordable mobility solutions while striving to achieve carbon net-zero status by 2038.