Jeep is eyeing Mexico for its next electric-vehicle facility.
Key details
Stellantis NV is considering renovating a plant in Mexico to build hybrid and electric vehicles as it transforms its lineup to meet surging demand for battery-powered transport, reports Bloomberg.
The owner of the Jeep, Peugeot, and Ram brands is considering a renovation of one of its factories in Saltillo, Coahuila, about 200 miles from the Texas border. The investment would be in the multibillion-dollar range and would occur over the coming years. The plans have not been finalized and could still change.
“We invest regularly in plants all around the world to upgrade in terms of process, vehicle production or adapt to electrification as part of our $35 billion investment in electrification and software announced during our EV Day one year ago,” said company spokesman Shawn Morgan, in an emailed response to questions.
Why it’s important
Stellantis already makes the compact Jeep Compass crossover at its Toluca assembly plant. The automaker plans to bring electrified versions of the Compass to that plant in 2024, according to vice president at AutoForecast Solutions, Sam Fiorani.
The company’s plan is to make 75 fully electric models by the end of the decade and convert 50% of U.S. sales and 75% of European sales to battery-powered vehicles.
Jeep isn’t the only company eyeing Mexico for its latest endeavors. General Motors Co. is making its Chevrolet Blazer and Equinox in Mexico, as Ford Motor Co. ramps up production of its Mustang Mach-E, according to Bloomberg.
The plans are still under development and are yet to be announced.
What’s not being said
The newly passed anti-inflation legislation provides $369 billion for climate and clean energy provisions, making it the most aggressive climate investment ever taken. The bill will provide incentives for manufacturing in the U.S. With this bill being passed, the new facility in Mexico will not receive any of the incentives.