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Stellantis (STLA) to Invest $229M for Overhaul of 3 Plants in Indiana

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Stellantis (STLA - Free Report) plans to invest $229 million in three plants in Indiana, in order to accelerate the development of electric vehicles (EVs).

The investment will revamp three Kokomo plants in Indiana to produce electrified, eight-speed transmissions, and retain 662 jobs. The next-generation transmissions can be integrated in internal combustion, mild hybrid or plug-in hybrid vehicles. This in sync with the automaker's strategy of producing a mix of traditional combustion engine vehicles, hybrid vehicles and all-electric vehicles in its quest to attain 40% low-emission vehicle sales in the Unites States by 2030.

Scheduled for an overhaul to produce the fourth generation of the company's eight-speed transmission are the Kokomo Transmission, Kokomo Casting and Indiana Transmission plants. The latest investment marks an important stepping stone for Stellantis’ long-term vision of further expanding its battery electric offerings. The new transmission will be a versatile one, which can be used for a variety of applications.

The latest announcement comes three months after Stellantis laid out its long-term electrification strategy, in which it committed to invest more than 30 billion euros ($35.54 billion) through 2025 for electrification of its vehicle lineup. The commitment marked a historic step in the company’s efforts to bring together and electrify 14 brands under a single roof.

Amid the heightening climate change concerns, investors are intrigued by automakers that provide green transportation solutions. Automakers like Tesla (TSLA - Free Report) , General Motors (GM - Free Report) and Volkswagen (VWAGY - Free Report) are leaving no stone unturned to step up their EV game. Thus, amid the intensified competition, the latest investment decision is another initiative by Stellantis to rev up its EV game plan by expediting the development of low-emission technology.

Stellantis’ Alfa Romeo to Roll Out New Model Each Year Till 2026

Stellantis’ Alfa Romeo recently announced plans to roll out a new model each year until 2026, starting with the Tonale SUV next year. Further, starting from 2027, all Alfa Romeo new vehicles would be EVs.

Production of the Alfa Romeo Tonale was initially expected to start by the end of 2021 but will now debut in March next year, with sales in Italy to commence in June.

Meanwhile, Stellantis’ Lancia also laid out a 10-year plan for the brand, which is selling only one model, the Ypsilon small car, available only in Italy.

The plan is aimed at expanding the Lancia brand to other European markets, including France, Germany and Nordic countries, with primary focus on large cities. The brand will produce EVs only from 2026 onward and roll out three new models by 2028.

Stellantis, the world's fourth largest carmaker, formed earlier this year though the merger of Fiat Chrysler and France's PSA, has pooled its Alfa Romeo, Lancia and former PSA's DS brands under a single umbrella to carve out a niche in the premium sector of the auto market.

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