Stellantis' $13B US gamble

It appears Stellantis’ new CEO isn’t wasting any time fixing up the company’s North American portfolio. The announcement yesterday of a $13B investment and five new models raises some interesting questions...

🔸 Next-gen Dodge Durango to be built in Detroit

This confirms what was announced back in January, and so is the least surprising bit of news here, and suggests the Durango will continue to be twinned with the Grand Cherokee. With the next-gen Grand Cherokee announced as part of the most recent UAW contract for 2027/2028, the Durango will likely reside on a updated version of the Jeep’s platform in time for the planned 2029 launch (and I’d expect at least a PHEV variant).

🔸 New Jeep Cherokee and Compass to be built in Illinois

Ironically, the Cherokee used to be built there before Stellantis dropped it two years ago--and this plan will build on Cherokee production that’s already set up in Mexico. The addition of the Compass confirms its US availability--which had been open to question given that plans to build it in Ontario (at the old Challenger/Charger/300 plant) were on hold. It also confirms the new Compass will continue as Jeep’s entry level model for the foreseeable future. Unfortunately, this still leaves Brampton without a product...

🔸 New Ram midsize truck to be built in Toledo

Multiple surprises here, both moving the truck from Belvidere to Toledo and the confirmation that it will be body-on-frame (like Ranger, Tacoma, Frontier, and Colorado). There had been speculation that Ram would use the multi-energy STLA Large architecture (underpinning Charger and Wagoneer S), and this pivot still leaves some question unanswered. Is it a rebodied Gladiator, or something more unique? A PHEV variant is likely (since that hardware is on the shelf), and perhaps even a Hemi as well.

🔸 New large SUV to be built in Warren

Large SUVs are profit centers, and the most likely scenario here is a Dodge variant (remember the Ramcharger?) of the Jeep Grand Wagoneer that’s lower-priced and higher-volume to better compete with Chevrolet Tahoe and Suburban. H1 2025 sales for Wagoneer and Grand Wagoneer plummeted; the facelift and repositioning this fall may help, but this has clearly been a missed opportunity for Stellantis.

But there was one significant omission from the press release: the Chrysler brand. There has been talk about both a new SUV and a Halcyon-inspired sedan, but these vehicles aren’t listed as part of this investment. Are they still in the plan? Will Stellantis wind down the Chrysler brand? I suspect there is more to this story yet to come...

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