Stellantis will invest a record $13 billion in U.S. manufacturing. Investors have priced it

The automobile concern Stellantis, which owns the Chrysler and Jeep brands, has promised to invest $13 billion in the coming years in a large-scale expansion of production in the United States and the launch of several new models. The move will allow the company to accomplish several tasks at once. The auto giant's shares reacted with a sharp rise.

Stellantis' new management plans to invest $13 billion in U.S. manufacturing facilities over the next four years to regain a foothold in the company's key U.S. market. This is the largest investment in the automaker's more than 100-year history.

The Stellantis investment program will increase annual vehicle production by 50% over current levels. The plan also includes the launch of five new products: a mid-size pickup truck, two new Jeep models, an "all-new" electric vehicle with extended range and a large SUV with an internal combustion engine. Other investments include R&D costs, supplier costs and investment in a U.S. engine manufacturing center.

Stellantis shares jumped by 5% at the post-market of the New York Stock Exchange. Then in the course of over-the-counter trades on the American floor of Blue Ocean ATS the growth of quotations accelerated up to 10%.

With the appointment of Antonio Filosa to head Stellantis in 2025, the company is reassessing its regional investment priorities, with a focus on its U.S. business. Under former CEO Carlos Tavares, Stellantis aggressively shifted manufacturing and engineering operations to lower-cost countries such as Mexico. Filosa is now looking to reverse that process, Bloomberg writes.

The new investment program will allow Stellantis to reduce car imports that are subject to U.S. President Donald Trump's duties, and a model lineup refresh will help sales recover, Barron's noted.

Stellantis' U.S. sales peaked in 2018, when the company was still called Fiat Chrysler. In 2024, revenue in the U.S. market fell 15%, and in the first nine months of this year, it fell another 17% year-over-year. Falling profitability does not add optimism to investors: in 2023, Stellantis' operating profit was about $24 billion, in 2024 it fell to $4 billion. Wall Street forecasts that in 2025 the figure will be about $2.5 billion, and in 2026 it will rise to $7 billion, writes Barron's.

Shares of Stellantis have fallen 24% since January and 66% from their early 2024 highs. Problems at the company have caused its securities to trade recently at a multiple of less than 2 to expected earnings over the next 12 months (Forward P/E), up from about 3 a year ago, Barron's notes.

This article was AI-translated and verified by a human editor