Stellantis to Gain Over $500 Million to Promote EV Ambitions
Photo Source: Stellantis
The Biden administration is taking significant steps in 2024 to increase electric vehicle (EV) production in the United States. As part of this initiative, the Department of Energy (DOE) announced plans to contribute approximately $1.1 billion in grants to automakers General Motors and Stellantis. Stellantis, the parent company of brands such as Chrysler, Dodge, Jeep, and Ram, will be awarded considerable funds to transform existing plants for electric vehicle production.
What are the Effects of Automotive Conversion on the Economy?
The Department of Energy’s planned grants aim to help fund the reorganization of 11 at-risk plants across eight states. These changeovers are expected to enable the production of 1 million electric vehicles annually, establish 3,000 new positions, and retain 15,000 existing jobs. This effort is a pivotal aspect of the Biden administration’s approach to modernize historical automotive manufacturing facilities and guarantee the United States remains competitive in the global automotive market.
“Building a clean energy economy can and should be a win-win for union auto workers and automakers. This investment will create thousands of good-paying, union manufacturing jobs and retain even more, from Lansing, Michigan to Fort Valley, Georgia, by helping auto companies retool, reboot and rehire in the same factories and communities.”
–U.S. President Joe Biden
Stellantis’ Strategy for Electric Vehicle Production
Stellantis is prepared to receive a total of $584.8 million to renovate its facilities for electric vehicle production. The company will utilize $334.8 million to convert its idled Belvidere Assembly Plant in Illinois. As such, this alteration will allow the factory to construct electric vehicles like a new midsize electric pickup truck, introducing new life into the facility and creating new regional employment opportunities.
Moreover, Stellantis will get $250 million to modernize its Indiana Transmission Plant in Kokomo, Indiana. This investment will switch the plant’s purpose to assembling electric vehicle equipment, a crucial action in developing Stellantis’ electric vehicle offerings.
Supplier Investments
Stellantis’ shift toward increased electric vehicle production also incorporates substantial investments from its suppliers. For example, Hyundai Mobis, an essential supplier, will obtain $32 million to produce battery packs and plug-in hybrid components in Ohio. This investment is vital for supporting Stellantis’ hybrid vehicle aims. Along similar lines, Cummins, a prestigious engine supplier for Ram, is set to acquire $75 million and will match it for a total of $150 million to convert a segment of its existing plant in Indiana.
This modification will let Cummins produce powertrain systems, battery packs, and other battery-electric vehicle parts for Accelera by Cummins, the company’s zero-emissions business sector. Indeed, Cummins expects to add roughly 250 full-time jobs to support this extensive manufacturing capacity, with opportunities for the plant’s existing personnel to transition to several of these positions over time.
ZF North America, another integral supplier for Stellantis, will prosper from $157 million to convert part of its plant in Marysville, Michigan. Like other suppliers, this expense will allow ZF North America to build electric vehicle components, further advancing Stellantis’ change to electric mobility.
Take Part in the EV Transition at Cape Coral Chrysler Dodge Jeep Ram!
Additionally, the Biden administration’s aspirations are reassuring autoworkers, especially in high-priority battleground states, that transitioning to electric vehicles will not result in sizable job losses. If you are encouraged by the favorable circumstances surrounding electric vehicles, please check out our EV specials. You are also welcome to learn more about us and our attentive sales team. We are proud to be your dealership home.