Stellantis announced a $406 million investment to upgrade three Michigan factories to support the production of EVs and battery parts, fulfilling commitments from its latest labor agreement with the United Auto Workers (UAW).
The investment is a step toward the automaker’s transition to a dual-energy vehicle lineup, integrating both gasoline and battery-powered options.
The largest portion of the investment -- $235.5 million -- will go to the Sterling Heights Assembly Plant, north of Detroit, where the company will begin production of the battery-powered Ram 1500 pickup truck later this year. This factory will also produce a full-size electric pickup with a range-extending gas-powered generator.
This latest investment brings Stellantis' total commitment to the Sterling Heights facility to $1.4 billion, a key promise in the UAW contract ratified last fall after a six-week strike.
Stellantis is allocating $97.6 million to the Warren Truck Plant, also located near Detroit, to begin production of electric versions of the Jeep Wagoneer SUV, part of the automaker’s broader goal of producing four Jeep EVs globally by the end of 2024. According to the UAW contract, Warren Truck is slated to receive $600 million in total investment.
Additionally, $73 million will be invested in the Dundee Engine Plant, which will begin assembling and testing battery trays for future EVs. The plant will also produce front and rear beams for large vehicles by 2026.
While these investments address some of Stellantis’ commitments under the UAW agreement, delays in reopening the Belvidere Assembly Plant in Illinois and building a new battery facility there remain a point of contention. UAW President Shawn Fain has threatened further strikes if the company does not meet its contractual obligations to restore more than 2,700 jobs at the Illinois plant. Stellantis has cited "market conditions" for the delay but maintains it will fulfill its promises in the long term.
The investments come on the heels of the announcement Stellantis will receive more than half a billion dollars in federal grants for Belvidere Assembly and a planned EV drive module plant in Indiana.
