Michigan plants get electric charge from struggling Stellantis

Stellantis will invest $406 million at three of its Michigan plants as part of the automaker’s electrification strategy. 

By the numbers: The EV investment will be directed toward the Sterling Heights Assembly Plant, Warren Truck Assembly Plant, and Dundee Engine Plant.

• Sterling Heights Assembly Plant will get an investment of $97.6 million to produce the automaker’s first battery-electric 2025 Ram 1500 REV pickup, alongside ICE versions of the Jeep Wagoneer and Wagoneer L. 

• Warren Truck Assembly Plant will receive around the same to produce a future electric Jeep Wagoneer. 

• Dundee Engine Plant is getting more than $73 million to retool the facility to assemble, weld, and test battery trays for Stellantis’ flexible architecture for various vehicles, including BEVs.

Between the lines: News of the investment comes amid looming concerns about Stellantis’ business operations in North America, brought on by declining sales, vehicle quality issues, and ongoing tensions with the United Auto Workers (UAW).      

• Stellantis’ U.S. sales and profits have been down so far this year, causing shareholders to sue.

• CEO Carlos Tavares has been openly critical of the company’s quality issues in the U.S., noting quality problems with Ram 1500s.

• The automaker has come under fire by the UAW for claims that it has yet to follow through on some key agreements outlined in its new contract.

What we’re watching: Dealer frustration is reaching a boiling point. They’re accusing Tavares of prioritizing short-term profits over the long-term health of the company's brands.

• In an open letter dated Sept. 10 the national dealer council said Tavares' "short-term decision making" that boosted profits last year and padded his compensation but ultimately damaged the company's market share.

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