Chrysler Parent Stellantis Plans $13 Billion Investment in U.S. The Stock Is Up.

Stellantis stock was up 6.6% in after hours trading at $10.56 a share. (Courtesy Stellantis)

Key Points

• Stellantis plans to invest $13 billion in the U.S. to expand production by 50% and launch five new vehicles.
• The investment aims to reduce imports, as 600,000 of 1.3 million vehicles sold in 2024 were imported.
• The four-year plan is expected to create 5,000 new jobs across Ohio, Michigan, and other states.

Stellantis is investing in the U.S. Investors were happy about that.

The Chrysler and Jeep parent announced plans late Tuesday to spend $13 billion on expanding production in the U.S. by 50% and launching five new vehicles for the market.

In after-hours trading, Stellantis stock surged 6.6% to $10.56. On Wednesday, shares traded as high as $10.15 before closing at $10.12, up 2.1%. The S&P 500 added 0.4% and the Dow Jones Industrial Average finished just into the red.

The money will do a couple of things for the company. For starters, it will reduce imports. Stellantis sold about 1.3 million vehicles to Americans in 2024. Roughly 600,000 were imported from Mexico and other countries. Those are subject to President Donald Trump’s tariffs, raising costs for all auto makers, including Stellantis.

Increasing production by 50% will heavily shift Stellantis’ mix to domestic production.

Spending will also help renew Stellantis’ product lineup. U.S. sales declined 15% in 2024. Through September, Stellantis’ U.S. sales were off another 17% year over year.

It will take some time. The plan spans four years, but should result in 5,000 new jobs spread across Ohio, Michigan, and other states.

“This investment in the U.S.—the single largest in the Company’s history—will drive our growth, strengthen our manufacturing footprint and bring more American jobs to the states we call home,” said CEO Antonio Filosa. “As we begin our next 100 years, we are putting the customer at the center of our strategy, expanding our vehicle offerings and giving them the freedom to choose the products they want and love.”

Filosa became CEO in June, taking over a vacant C-suite. Former CEO Carlos Tavares left in December 2024, amid falling sales and elevated U.S. dealer inventories. The spending plan is a splashy step for the company’s new leader.

Coming into Wednesday trading, Stellantis’ stock was down about 25% over the past year and off about 66% from highs reached in early 2024.

Falling profitability has weighed on investor sentiment. Stellantis generated about $24 billion in 2023 operating profit. It generated about $4 billion in 2024. Wall Street projects about $2.5 billion for 2025 before rising to $7 billion in 2026.

All the turmoil has left shares trading for less than 2 times earnings expected over the next 12 months, down from about 3 times a year ago.

Write to Al Root at allen.root@dowjones.com