Stellantis Expands Mexico Production With New EV Brand

Stellantis is expanding its manufacturing footprint in Mexico with new production assignments at its Saltillo and Toluca plants and the introduction of a new electric vehicle brand, moves that contrast with recent plant closures and job losses across Mexico’s automotive industry amid rising competition from Chinese imports.

The automaker confirmed that its Saltillo complex in Coahuila has begun producing the Ram 1500 pickup, while its Toluca plant in the State of Mexico will add two new models: the sixth-generation Jeep Cherokee hybrid and the all-electric Jeep Recon. The production decisions form part of Stellantis’ preparations for 2026 and align with its global Dare Forward 2030 strategy, which targets a higher share of electrified vehicles across its portfolio.

“2026 will not be a year to manage uncertainty, but to redraw our industrial map in Mexico. This is only the beginning of what is coming. What matters is what comes next,” said Daniel González, CEO, Stellantis México.

The Saltillo assignment places the Ram 1500, a full-size pickup, in direct competition with the Chevrolet Silverado produced in Silao, Guanajuato. Stellantis executives said the move reinforces Coahuila’s role as a core production hub for the Ram brand and reflects the group’s focus on higher-volume and higher-margin vehicles in Mexico.

In Toluca, Stellantis is preparing for a more diversified production mix. The plant will manufacture the Jeep Cherokee hybrid, marking the first time in the model’s six-generation history that it will be offered with hybrid technology and the first time it will be produced in Mexico. It will also assemble the Jeep Recon, a fully electric model that will join the Compass and Wagoneer S, whose production began in Toluca in 2024.

“In the case of the Cherokee, it is important to note that this is the first hybrid in the history of the model across its six generations, and it will be produced in Mexico,” said Rafael Paz, director of the Jeep and Dodge brands, Stellantis México.

Stellantis said the new model assignments support employment at both complexes and provide continuity for its supplier network. González said the company has recently added 5,000 jobs in Mexico as production ramps up. “We have eight plants in the country, distributed across two complexes, with 13,000 people in manufacturing alone and 17,000 employees overall. This shows a company that is betting on Mexico and believes in Mexico,” he said.

The automaker also reported strong domestic sales performance, describing November as its best month in recent years in the Mexican market.

The announcements come as Mexico’s automotive industry faces mounting pressure from imported vehicles, particularly from China. Industry estimates suggest Chinese brands now account for roughly two out of every 10 new vehicles sold in Mexico. This shift has coincided with the closure of three production plants and the loss of more than 10,000 skilled jobs nationwide.

Recent closures include Nissan’s plant in Cuernavaca, the cancellation of a Nissan expansion project in Aguascalientes and the suspension of operations at another Stellantis facility in Saltillo. In addition, a planned BYD plant in Jalisco was scrapped due to tariff-related issues, and the COMPAS plant in Aguascalientes is scheduled to close in 2026.