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Stellantis, the proprietor of Chrysler and Fiat manufacturers, is planning to take a position greater than $5bn within the US in a deal revealed days after its chair John Elkann met Donald Trump forward of the US president’s inauguration.
In an electronic mail to employees seen by the Monetary Instances, Stellantis’s head of US operations Antonio Filosa mentioned the investments can be made in websites throughout the US, in Illinois, Michigan, Ohio and Indiana.
Elkann instructed Trump that Stellantis would strengthen its US manufacturing footprint, “offering stability for our nice American workforce”, the e-mail despatched to Stellantis US staff on Wednesday acknowledged.
The plans embody a brand new mid-size pick-up truck in Belvidere, Illinois, investments in a website in Detroit constructing a brand new Dodge automobile and in Jeep manufacturers at its Toledo website in Ohio, in addition to investments in services to make an engine utilized in Stellantis automobiles in Kokomo, Indiana.
Filosa mentioned the plans “entail a multibillion-dollar funding in our folks, nice merchandise, and revolutionary know-how, all right here within the US”.
The corporate, shaped by a merger between the Fiat and Peugeot teams, makes a variety of manufacturers together with Fiat Chrysler and Jeep automobiles.
The plans come as European carmakers assess the way to deal with the prospect of US tariffs on imports from Europe.
Stellantis additionally has a major manufacturing presence in Canada and Mexico, that are threatened by the prospect of Trump imposing 25 per cent tariffs on the US’s neighbours.
Some 40 per cent of its automobiles bought within the US are manufactured within the two international locations, in keeping with Moody’s.
A report from the credit standing company on Tuesday mentioned Stellantis, Volkswagen and Volvo vehicles had been essentially the most uncovered European carmakers to new potential tariffs from the Trump administration.
Stellantis mentioned it was “centered on growing market share and rising gross sales quantity” within the nation, in its electronic mail. The plans have been shared with the United Auto Staff union, which represents staff within the sector.
The announcement comes greater than a month after former chief government Carlos Tavares departed the corporate, after disagreements with the board.
Elkann has since met governments in Italy and France, in addition to the European Fee, as he seeks to rebuild relations with stakeholders within the carmaker.
Final month, the corporate sought to enhance relations with Italy’s authorities, which had deteriorated beneath Tavares, pledging to take a position €2bn within the nation and increase car production.
The US announcement comes after a difficult interval for Stellantis and different carmakers, which have been hit by a slowdown in demand for its vehicles and slowing progress in electrical car gross sales.
The corporate issued a revenue warning in September and shares are down 50 per cent since a peak final March, with buyers but to be satisfied that Stellantis has turned a nook.
