Stellantis is considering revamping its Saltillo, Coahuila, plant to produce hybrid and electric vehicles, as the company revamps its product line to meet surging demand for electric vehicles . Saltillo is one of the industrial centers of northern Mexico, about 200 miles (320 kilometers) from the country's border with the U.S. state of Texas.
Stellantis is also evaluating the possibility of investing in the state of Mexico, where the company also has a factory in Toluca. In addition, the company has the potential to invest in Sonora. The investment plan has not yet been finalized and could still change, the sources said.
"We regularly invest in factories around the world to upgrade processes, vehicle production, or accommodate electrification, which was our EV Day a year ago," Stellantis spokesman Shawn Morgan said in an email. Part of the total $35 billion in electrification and software investments announced during (EV Day).”
Stellantis is currently building the Jeep Compass crossover at its Toluca plant in Mexico, after analysts said the company plans to build an electrified version of the Compass at the plant in 2024. The Stellantis Saltillo plant makes the Ram 1500 and heavy-duty pickups, as well as the Ram ProMaster van, which CEO Carlos Tavares has made as a key product to meet demand for electric vans from e-commerce companies such as Amazon.
Mexico has long been the world's major automotive production center, and the country's cars are mainly used to meet the needs of foreign markets. Previously, a number of major car companies and parts suppliers have announced new plans to invest in Mexico. GM is currently producing the Chevrolet Blazer and Equinox in the country, and Ford is ramping up production of the Mustang Mach-E in the country.
CATL, the world's largest electric vehicle battery maker, is also considering building plants in at least two locations in northern Mexico, including Saltillo. Batteries produced at the Mexican plant will be used to supply Tesla and Ford.
Mexican state governments have been offering incentives to attract investment, and Tesla has even secured an exclusive border lane to Texas in the state, allowing its suppliers in Nuevo Leon, Mexico, to reduce wait times.
