Stellantis has announced plans to expand operations at two Mexican plants and launch locally a new electric vehicle (EV) brand in 2026, striking a contrast with other global automakers that have reduced operations in Mexico. 

Stellantis aims to position higher-volume, higher-value-added products in its Mexican production network. The Saltillo plant in the border state of Coahuila will produce the Ram 1500, a full-size pickup truck that will compete directly with Chevrolet’s Silverado, which is manufactured in Silao, Guanajuato.

In its Toluca facility in Mexico state, Stellantis will assemble its Cherokee hybrid and Recon EV, introducing a more diverse and technologically advanced production cycle to the plant. It will also continue to produce its Compass and Wagoneer S models. 

“This is only the beginning of what will happen in Mexico,” said Daniel González, the Stellantis Mexico CEO. “What matters is what comes next.” 

While Stellantis is reconfirming its commitment to the Mexican market, some other automakers have moved operations, citing uncertainty in the industry owing to the introduction of U.S. tariffs across several industries by the Trump administration in the United States. 

General Motors has moved part of its production to the United States, while Nissan plans to close two Mexican plants, in Cuernavaca and Aguascalientes. Tesla has paused the development of a gigafactory in Mexico. 

 The launch of the new Stellantis models has supported the creation of 5,000 jobs in Mexico, according to González. 

“We have eight plants in the country, two main complexes, 13,000 people in the plants and 17,000 in total,” said González. “This shows a company that is betting on Mexico and believes in Mexico.” 

Stellantis will also introduce the Leapmotor brand to the Mexican market next year, with the launch of at least 13 modelss.

The EV startup Leapmotor was founded in China in 2015. In 2024, the firm signed an agreement with Stellantis for the marketing and after-sales service of its cars outside of China, aimed at accelerating its international expansion. 

The expansion of Stellantis in Mexico comes after the firm announced a partial suspension of its Mexico operations in April due to concerns over the potential introduction of auto tariffs by the United States. Since then, however, greater market stability has helped solidify the firm’s position in Mexico. 

 With reports from Expansión and Mexico Business News