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Stellantis NV (NYSE:STLA) announced Tuesday that the automaker will be investing a total of $155 million in three Kokomo, Indiana, plants to produce new electric drive modules (EDM) that will help power future electric vehicles assembled in North America. The move also pushed the company one step closer towards its goal of 50% battery electric sales in the U.S. by 2030.
Investments will be made at the Indiana Transmission, Kokomo Transmission and Kokomo Casting Plants. The gearbox cover will be cast at Kokomo Casting and machined at Kokomo Transmission. Gear machining and final assembly will be at the Indiana Transmission Plant. Production is expected to start in the third quarter of 2024, following retooling.
“While we continue our successful transition to a decarbonized future in our European operations, we are now setting those same foundational elements for the North American market,” said Carlos Tavares, Stellantis CEO. “By combining the benefits of the EDM with our new BEV-centric platforms and innovative battery technologies, we will offer our customers a variety of electric vehicles with unparalleled performance and range at more affordable prices. And with our in-house manufacturing capabilities and expertise, we will do it with greater flexibility and efficiency.”
Since 2020, Stellantis has invested nearly $3.3 billion in Indiana to support its transition to electrification. This includes recent announcements of $643M to produce a new engine for conventional and PHEV applications, a next-generation eight-speed transmission and a gigafactory joint venture with Samsung SDI (KS:006400).
“With more than 7,000 employees in Indiana, these investments will leverage the core manufacturing competencies of the local workforce in the areas of casting, machining and assembly, all of which will be needed even as the market transitions to an electrified future,” said Mark Stewart, Stellantis North America COO. “The city of Kokomo and the state of Indiana have been great partners for many years. This community will continue to play a central role in our efforts to provide safe, clean and affordable mobility solutions for our customers long into the future.”
With the investment, more than 265 jobs will be retained across all three plants.
Shares of STLA are down 0.05% in afternoon trading on Tuesday.
