Under pressure from Trump's tariffs, the world's fourth-largest automaker announced a $13 billion investment in the US.

Stellantis, the world's fourth-largest automaker, announced on Tuesday (October 14) that it will invest $13 billion in the United States over the next four years. The move, it said, will bring five new models to the market, create 5,000 new jobs at its Midwest plants, and increase domestic production by 50%.

Stellantis was formed in 2021 through the merger of PSA Peugeot Citroën (PSA) and Fiat Chrysler Automobiles (FCA). Its brands include Fiat, Peugeot, Citroën, Jeep, and Chrysler.

The plan includes some previously disclosed investments, and it's unclear how many of these investments and jobs are new and how many are previously announced.

The investment could help Stellantis mitigate the impact of US President Trump's tariffs. The automaker previously said Trump's tariffs would cost it approximately $1.7 billion this year.

The White House's tariffs have increased the cost of vehicles imported from regions like Mexico, Canada, and Europe, where Stellantis operates some plants.

"Tariffs are becoming increasingly clear. We believe they will be just another variable in our business equation that we need to be prepared for, and we will be," Stellantis CEO Antonio Filosa said in a media interview.

Filosa also said this represents the largest investment in the company's history.

The investment announcement comes as Stellantis strives to reignite sales momentum in one of its most important markets, the United States. U.S. sales peaked in 2018 at over 2.2 million vehicles per year, but have since declined sharply as the automaker and its former CEO, Carlos Tavares, focused on profits over volume.

Stellantis' U.S. operations include 34 manufacturing plants, parts distribution centers, and R&D centers across 14 states. According to the company, these facilities employ more than 48,000 people.

The investment will inject new capital into factories in Michigan, Illinois, Ohio, and Indiana. Some of these plants are planned to produce new models, while others will expand production of existing models.

Stellantis' U.S.-listed shares rose about 5% in after-hours trading on Tuesday (October 14th) following the news. The company's stock price has fallen over 22% so far this year.

Since taking office, U.S. President Trump has wielded tariffs, aiming to create more manufacturing jobs in the United States, particularly in the automotive industry, by imposing high tariffs.

This follows a similar move by General Motors. Earlier this year, the company pledged to invest $4 billion to expand its U.S. production capacity.