Stellantis, one of the world’s largest automotive giants, announced an investment of more than $406 million in three of its facilities in Michigan.
This investment is part of its multi-energy strategy, which seeks a transition towards electrification without completely abandoning internal combustion engines (ICE).
Sterling Heights Assembly Plant (SHAP) will be the first in the United States to build an all-electric vehicle, the Ram 1500 REV, which is set to launch in late 2024.
Additionally, it was confirmed that they will also manufacture the Ram 1500 Ramcharger, a model with extended range, along with internal combustion versions.
Strategic investment for electrification
Stellantisthe parent company of brands such as Jeep, Ram and Dodge, seeks to lead the transition to electric mobility through its strategic plan Dare Forward 2030. This initiative aims to achieve a 50% battery electric vehicle (BEV) sales mix in the United States by 2030. As part of this strategy, Stellantis is committing more than $235.5 million to the Sterling Heights Plant (SHAP), $97.6 million to the Warren Truck Assembly Plant (WTAP), and more than $73 million to the Dundee Engine Plant (DEP).
The most significant investment will be at SHAP, where the plant will be reconfigured to produce the Ram 1500 REV, the company’s first all-electric light-duty pickup truck. This model was unveiled at the 2023 New York Auto Show and is expected to achieve a range of up to 500 miles with its optional 229 kilowatt-hour (kWh) battery. Additionally, the Ram 1500 Ramcharger will be produced, a high-performance vehicle with an extended hybrid system that will not rely on public chargers, thanks to its 130 kW onboard generator.
Multi-energy approach
Key to Stellantis’ strategy is its multi-energy approach. Unlike other auto companies seeking a full transition to electric vehicles, Stellantis will continue to produce internal combustion vehicles (ICE) and hybrid models alongside its new battery electric vehicles (BEV). According to Stellantis CEO Carlos Tavares, “We are adding innovations to our manufacturing infrastructure in Michigan to support a multi-energy strategy focused on customer demand.”
To adapt the SHAP facility, Stellantis has made a significant transformation in record time, completing the installation of dedicated EV production systems during two weeks of planned downtime. These changes include a new conveyor system, process automation for BEV manufacturing, and the reorganization of workstations to be able to produce ICE vehicles, BEVs, and range-extended models on the same assembly line.
Warren and Dundee: key pieces for Stellantis’ electrified future
The Warren Truck Assembly Plant (WTAP) will also be a key part of the company’s electric future. With an investment of $97.6 million, this plant will begin production of an electrified Jeep Wagoneer in 2024, one of four electric models that Jeep will launch globally before 2025. This electrified Jeep will be built alongside combustion versions of the Wagoneer and Grand Wagoneer, showcasing the flexibility of Stellantis’ production lines.
At the Dundee Engine Plant (DEP), Stellantis will invest more than $73 million to assemble battery trays and machine components for the new STLA Frame and STLA Large frames. These frames are essential for large electric vehicle platforms such as the Ram 1500 REV. Additionally, the plant will continue to produce the GME-T4 EVO engine and, beginning in 2025, a new turbocharged 1.6-liter engine with hybrid electric vehicle (HEV) applications.
A commitment to sustainability
The plan Dare Forward 2030 Stellantis’s vision goes beyond launching new electric models. The company has pledged to invest more than €50 billion in electrification over the decade, securing 400 gigawatt-hours (GWh) of battery capacity, supported by battery manufacturing plants in North America and Europe. In addition, Stellantis is committed to achieving carbon neutrality by 2038, with a small percentage of remaining emissions offset.
The launch of the Ram 1500 REV and the electrification of iconic models such as the Jeep Wagoneer are key steps to meet these ambitious goals. With the transition to electrification well underway, Stellantis seeks to establish itself as a leader in sustainable mobility, offering innovative, clean and affordable transportation solutions for its customers.
The investment of more than $406 million in the Michigan facility reflects Stellantis’ commitment to electrification while maintaining a flexible strategy that responds to demand for both internal combustion and electric vehicles.
With the launch of models such as the Ram 1500 REV and the electrified Jeep Wagoneer, the company is positioned to lead the market in the coming decade. This balanced approach between electrification and internal combustion allows Stellantis to adapt to different EV adoption scenarios, while continuing to advance towards its goal of cleaner and more efficient mobility.
Source: geeksroom.com
