Stellantis Spends $406 Million in Michigan to Begin Electric Ram Production

Workers install a windshield into a Ram 1500 truck on the assembly line at the Warren Truck Assembly Plant in Warren, Mich., on Sept. 25, 2014. Bill Pugliano/Getty Images

Stellantis, the global automaker behind brands such as Jeep, Dodge, and Chrysler, announced on Sept. 11 a $406 million investment in three Michigan manufacturing facilities as part of a strategy to diversify its vehicle lineup.

The company’s Sterling Heights Assembly Plant in suburban Detroit will become the first U.S. plant in the company’s portfolio to build a fully electric vehicle, with the Ram 1500 REV—a battery-electric light-duty truck—slated for production starting later this year.

The truck is part of a growing introduction into the electric truck segment from automakers, including Chevrolet, Ford, Tesla, and Rivian. The $235.5 million investment in the Sterling Heights plant is part of a broader effort to accelerate the company’s move toward electric vehicle (EV) production, Stellantis said in a press release.

Last month Stellantis announced a plan to lay off an unspecified number of U.S. workers in the coming months to deal with increased capital spending to transition from gas to electric vehicles—as well as to compensate for declining U.S. sales in the first quarter and increased costs due to a new contract agreement reached with the United Auto Workers union.

The Sterling Heights facility will produce the Ram 1500 REV, which Stellantis first unveiled at the 2023 New York Auto Show. The truck is built on a new frame architecture specifically designed for full-size electric vehicles. The Ram 1500 REV will offer two battery options: a 229 kilowatt-hour pack, allowing for a range of up to 500 miles, and a 168 kilowatt-hour pack, providing up to 350 miles per charge.

Alongside the Ram 1500 REV, the Sterling Heights plant will also manufacture a range-extended variant of the vehicle, called the 2025 Ram 1500 Ramcharger. This version will feature 663 horsepower and 615 foot pounds, a unit of torque, with capabilities such as 14,000 pounds of towing and acceleration from 0 to 60 mph in four seconds, according to the company.

The Ramcharger will be equipped with a 92 kilowatt-hour battery and an onboard generator, allowing for flexibility in charging and power usage.

“Gearing up to build our first-ever Ram electric truck and the range-extended version in Michigan is a meaningful moment of pride for our teams,” said Stellantis CEO Carlos Tavares. “With these investments supporting both Jeep and Ram, we’re adding innovations to our Michigan manufacturing footprint.”

Stellantis is also committing $97.6 million to the Warren Truck Assembly Plant, also in suburban Detroit, to prepare for the production of electrified Jeep Wagoneer models.

Despite the increased investment at the Warren plant, the company previously announced Jeep layoffs are expected to begin as early as next month—with the changes at the plant meaning some operations will be reduced from two shifts to one.

The company plans to introduce four Jeep electric vehicles globally by 2025, which will be manufactured alongside internal combustion engine (ICE) versions of the Jeep Wagoneer and Grand Wagoneer.

Another $73 million will be allocated to the Dundee Engine Plant, an hour south of Detroit, where Stellantis plans to retool operations for the assembly of battery trays and the machining of beams for the company’s electric vehicle platforms and new frames.

That facility will continue producing traditional gas engines and hybrid-electric variants, reflecting what Stellantis said is a commitment to a multi-energy approach.

These investments are part of Stellantis’s Dare Forward 2030 plan, which aims to move the company to the forefront of electric vehicle production.

Stellantis has pledged to invest over €50 billion throughout the decade, with the goal of achieving a 100 percent battery-electric vehicle (BEV) sales mix in Europe and 50 percent BEV sales in the United States by 2030. The company has set a target to become carbon neutral by 2038.