Stellantis announced that it will invest $155 million across three plants, all located in Kokomo, Indiana. The money will go towards preparing the plants for the production of the automaker’s new electric drive unit (EDM).
The motors will be used in vehicles based on the STLA Large and the STLA Frame platforms. The EDM is made up of three parts—the electric motor, the power electronics, and the transmission. Housed together in a single unit, they are cheaper to produce, the automaker says.
The gearbox cover for the EDM will be made at Kokomo Casting and machined at Kokomo Transmission plant. The gear machining and final assembly, meanwhile, will be handled by its Indiana Transmission Plant, with production expected to start in 2024. The automaker says that 265 jobs will be retained across all three plants.
Read: Stellantis To Produce New STLA Large Platform EVs In Windsor, Canada
“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. “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.”
The move is part of a plan to make electric vehicles account for 50 percent of Stellantis’ sales in North America by 2030, and to be carbon-neutral by 2038. Vehicles that use the EDM, such as the STLA Frame-based Ram 1500 Rev, will be capable of a range of up to 500 miles (800 km), the automaker claims.
“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.”
