Stellantis Invests $406 Million in Michigan for EV and Hybrid Expansion

Stellantis has announced a significant investment of over $406 million across three key facilities in Michigan, reinforcing its commitment to a “multi-energy” strategy. This approach supports the production of vehicles with a range of powertrains, including electric, range-extended, and internal combustion engine (ICE) models. The Sterling Heights Assembly Plant (SHAP), Warren Truck Assembly Plant (WTAP), and Dundee Engine Plant (DEP) are set to receive this funding to prepare for the production of new vehicles and components.

Sterling Heights Assembly Plant (SHAP) – 

SHAP, home to the popular Ram 1500, will undergo a transformation with a $235.5 million investment. This facility will be responsible for producing Stellantis’ first fully electric truck, the 2025 Ram 1500 REV, and the range-extended Ram 1500 Ramcharger. The Ram 1500 REV is expected to launch in late 2024, followed by the Ramcharger in early 2025.

To accommodate the production of electric and hybrid models, SHAP has retooled its operations, adding new equipment, automation, and conveyor systems designed specifically for battery-electric vehicle (BEV) manufacturing. The Ram 1500 REV, built on the new STLA Frame architecture, will feature a battery capable of delivering up to 500 miles of range, with an optional 229 kWh battery pack available by late 2026.

The range-extending Ram 1500 Ramcharger will combine a 92 kWh battery with a Pentastar V6 engine acting as an onboard generator, providing flexibility for longer trips without the need for charging stops. This model will offer impressive performance specs, including 663 horsepower, a 4-second 0-60 mph time, and 14,000 lbs. of towing capacity.

Warren Truck Assembly Plant (WTAP) – 

WTAP will receive $97.6 million to support the production of two new electrified Jeep® Wagoneer and Grand Wagoneer (WS) models. The plant will continue to manufacture ICE versions of these SUVs. Still, it will also begin producing its new 4xe variants, which are expected to offer an extended electric range with an onboard generator similar to the Ram 1500 Ramcharger.

This investment aligns with Stellantis’ plan to introduce four Jeep EVs globally by 2025. These new models will give Jeep a competitive edge in the growing electrified SUV market, offering customers more environmentally friendly options without sacrificing the brand’s signature off-road capabilities.

Dundee Engine Plant (DEP) – 

More than $73 million in investments will be made in the DEP facility to support the production of critical components for Stellantis’ upcoming EV platforms. The plant will manufacture battery trays for the STLA Frame architecture and machine front and rear beams for the STLA Large architecture, with production starting in 2024 and 2026, respectively.

Additionally, DEP will continue to produce ICE engines, including the upcoming GME-T4 EVO, which is rumored to power the 2025 Jeep Grand Cherokee (WL). It will also be joined by a new turbocharged 1.6-liter inline-four-cylinder for hybrid electric vehicle (HEV) applications, set to launch in 2025. The 1.6-liter engine is expected to debut in the next-generation Jeep Cherokee (KM) and could also power a potential HEV version of the Jeep Recon (EJ). Jeep CEO Antonio Filosa has mentioned the possibility of a HEV version of the Recon several times over the past few months.

Tavares Speaks About Investiment – 

Stellantis CEO Carlos Tavares emphasized the importance of these investments, highlighting the achievement of [SHAP’s] transformation and the significance of building the company’s first-ever electric Ram trucks in Michigan. “Gearing up to build our first-ever Ram electric truck and the range-extended version in Michigan is a meaningful moment of pride for our teams,” Tavares stated.

Tavares’ recent announcement comes after heightened criticism surrounding Stellantis’ performance in the North American market, particularly a decline in sales and ongoing quality issues. Before he visited Michigan last month, Tavares publicly criticized the SHAP, highlighting operational inefficiencies and quality control problems impacting the company’s flagship Ram 1500 production. Despite this, during his visit, Tavares did not tour the SHAP facility, which drew additional attention, especially as United Auto Workers (UAW) members were rallying outside the plant, protesting labor conditions and voicing concerns over management decisions.