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Stellantis, proprietor of the Chrysler and Fiat manufacturers, mentioned it can make investments greater than $5 billion within the United States in an announcement days after its chairman John Elkann met Donald Trump forward of the US president’s inauguration.
In an e-mail to employees seen by the Financial Times, Stellantis’ head of US operations, Antonio Filosa, mentioned the investments shall be made in websites throughout the US, in Illinois, Michigan, Ohio and Indiana.
Elkann informed Trump that Stellantis will strengthen its manufacturing presence within the United States, “offering stability for our nice American workforce,” learn the e-mail despatched to U.S. Stellantis workers on Wednesday.
The plans embrace a brand new midsize pickup in Belvidere, Illinois, investments in a web site in Detroit to construct a brand new Dodge automobile and in Jeep manufacturers at its Toledo web site in Ohio, in addition to investments in amenities to provide an engine utilized in Stellantis automobiles in Kokomo, Indiana.
Filosa mentioned the plans “contain a multibillion-dollar funding in our individuals, nice merchandise and revolutionary applied sciences, all right here within the United States.”
The firm, created from the merger of the Fiat and Peugeot teams, produces a variety of manufacturers together with Fiat Chrysler and Jeep automobiles.
The plans come as European automakers take into account methods to take care of the prospect of U.S. tariffs on imports from Europe.
Stellantis additionally has a big manufacturing presence in Canada and Mexico, that are threatened by the prospect of Trump imposing 25% tariffs on the United States’ neighbors.
According to Moody’s, about 40% of automobiles bought within the United States are produced within the two nations.
A credit standing company report on Tuesday mentioned Stellantis, Volkswagen and Volvo automobiles are the European automakers most uncovered to potential new tariffs from the Trump administration.
In its e-mail, Stellantis mentioned it’s “centered on growing market share and gross sales quantity” within the nation. The plans had been shared with the United Auto Workers union, which represents business workers.
The announcement comes greater than a month after former CEO Carlos Tavares left the corporate, following disagreements with the board.
Elkann has since met with the governments of Italy and France, in addition to the European Commission, as he sought to rebuild relations with the automaker’s stakeholders.
Last month, the corporate sought to enhance relations with the Italian authorities, which had deteriorated below Tavares, by pledging to speculate 2 billion euros within the nation and enhance automobile manufacturing.
The U.S. announcement comes after a tough interval for Stellantis and different automakers, which have been hit by slowing demand for its automobiles and slowing progress in electrical automobile gross sales.
The firm issued a revenue warning in September and shares have fallen 50% from their peak final March, with buyers nonetheless not satisfied Stellantis has turned a nook.
