Stellantis Invests Over $406M In Michigan Facilities For Multi-Energy Strategy

Stellantis NV STLA announced on Wednesday that it is investing more than $406 million in three Michigan facilities to support its multi-energy strategy.

What Happened: As per a press release on Wednesday, the investment will accelerate the retooling of the Sterling Heights Assembly Plant (SHAP) to enable the production of the Ram 1500 in battery electric and range-extended electric variants, alongside internal combustion engine models. The Warren Truck Assembly Plant will add future electrified Jeep Wagoneer models to its production portfolio. The Dundee Engine Plant will support battery tray production and beam machining to complement gas engine assembly.

According to Stellantis CEO Carlos Tavares, “Sterling Heights Assembly has performed an incredible transformation in record time.”

He added that gearing up to build the first-ever Ram electric truck and the range-extended version in Michigan is a significant achievement for the company.

See Also: Tesla CEO Elon Musk Considers Making Steering Yoke Stationary While Cybertruck Parks Itself

These investments align with Stellantis’ Dare Forward 2030 strategic plan, which aims to lead in delivering innovative, clean, safe, and affordable mobility solutions. The company’s multi-energy approach spans products, platforms, manufacturing, and supply chains, enabling it to adapt to various electrification adoption scenarios.

Why It Matters: The announcement comes on the heels of Tavares’ recent visit to Detroit, where he aimed to devise a strategy to revive the company’s struggling North American operations. Tavares’ visit underscores the importance of the North American market to Stellantis and his commitment to personally oversee its turnaround.

Additionally, the company has been grappling with significant challenges, including a global recall of 1.46 million vehicles due to a safety software flaw. This recall affected nearly 1.23 million Ram 1500 trucks in the U.S. alone.

Moreover, the U.S. National Highway Traffic Safety Administration (NHTSA) has launched an investigation into over 781,000 Stellantis vehicles, including Jeep Wrangler and Gladiator models, for potential fire hazards. This probe follows multiple reports of engine compartment fires when the vehicle’s ignition was off.

Price Action: Stellantis was trading 0.59% lower during Wednesday’s pre-market at the time of writing after closing at $15.14 on Tuesday, according to Benzinga Pro.

Read Next:

• Tesla Engineer Pins Video Of Cybertruck Sustaining Damage On Driving Through Fence To Removal Of Stock Parts

Image by Jonathan Weis via Shutterstock

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari