Michigan will be home to first Stellantis EV factory in US

• Stellantis will build its first EV truck in Michigan, following a $235 million investment
• Adding electrification production capability to two additional Michigan factories will bring the automaker’s Michigan investment to $406 million
• The automaker has been struggling and offering Michigan salaried workers buyouts, but still aims to 50% EV sales in the U.S. by 2030

Global automaker Stellantis plans to retool a Michigan factory into its first electric vehicle plant in North America. 

The Detroit Three manufacturer formerly known as Fiat-Chrysler announced Wednesday that its Sterling Heights Assembly Plant will launch production of the company’s first battery-electric light duty pickup truck this year.

The $235 million investment at the Macomb County factory is part of $406 million in Michigan factory upgrades announced by the automaker on Wednesday, all designed to enable EV production in legacy auto plants. 

“We’re adding innovations to our Michigan manufacturing footprint to support a multi-energy approach that is laser-focused on customer demand,” Stellantis CEO Carlos Tavares said in a statement announcing the Ram 1500 REV production in Michigan. 

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The move offers a sign of commitment to Michigan from Stellantis — also makers of Jeep, Chrysler, Dodge, and Fiat vehicles — even as the Dutch-headquartered automaker seeks to trim costs and warns that it could shed some brands if they are not profitable. 

The company’s net income plummeted 48% in the first half of this year to $6.1 billion. 

Stellantis also offered buyouts in August to salaried workers in the U.S., most of whom are based in the automaker’s Auburn Hills headquarters. It was the second round of cuts there this year. 

Beyond the Sterling Heights factory changes, Stellantis’ other investments to boost EV capacity in Michigan include:  

• Retooling at the Warren Truck Assembly Plant for production of a future electrified Jeep Wagoneer. The company recently issued lay-off notices to 2,458 workers at the plant as it concludes production of the Ram 1500 Classic and goes to one shift instead of two.
• Adding battery tray production and other machining for auto frames and batteries at the Dundee Engine Plant in Monroe County. Some production will begin this year, after a layoff of about 600 workers during the changeover.

“Today’s investment is a big win for Michigan that will support good-paying jobs and helps our talented workforce to continue building the best cars and trucks in the world,” Gov. Gretchen Whitmer said in a statement. 

Stellantis’ moves in Michigan to add EV capability to existing factories follow years of erratic EV job growth due to the frothy market for battery-electric vehicles. Overall sales are increasing this year, but they still remain a small segment of the market and automakers are battling for market share. 

A Bridge Michigan investigation in spring showed that the state spent $1 billion toward major EV expansions that, at that time, had only generated 200 jobs.

So far this year among the other Detroit Three manufacturers, General Motors announced 1,000 layoffs among salaried workers, with 634 coming from the Detroit-based automaker’s tech center in Warren. Ford’s global layoffs include 1,400 workers at the Rouge Factory Complex, where it makes the F-150 Lightning electric truck. 

The Stellantis factories in Michigan gained attention in fall 2023 as the United Auto Workers launched a strike against the Detroit Three, in part as the union called for a “just transition” to EV production, which involves fewer parts than internal-combustion engine vehicles and different production techniques. 

The company’s EV investment in Michigan was promised in the contract deal reached in fall 2023, said Stellantis spokesperson Ann Marie Fortunate. 

However, the UAW more recently has criticized Stellantis over its delays in reopening a factory in Belvidere, Illinois. 

Unclear is whether the latest Stellantis investments in Michigan will result in production job gains. 

Stellantis is “continuously assessing market demand when determining production volumes” and will evaluate capacity changes as needed, Fortunate told Bridge.

Stellantis continues to work toward a target of 50% EV sales in North America by 2030, the company says.