Stellantis Planning New Production Hub In South Africa

Automaking giant Stellantis recently inked a Memorandum of Understanding (MoU) with the South Africa’s Industrial Development Corporation (IDC) and the Department of Trade, Industry, and Competition. The agreement entails the construction of the group's new production facility in South Africa.

Despite the production site remaining unspecified, the signing ceremony suggested a location in the South African special economic zone (SEZ) as it provides access to free ports and trade zones, as well as further incentives.

Head Of Stellantis Middle East and Africa (MEA), Samir Cherfan states: "The manufacturing site in South Africa will be a new building block in our industrialisation strategy that includes the plan to sell one million vehicles in the region by 2030 with 70% regional production autonomy and will bring us closer to our customers' needs in the region."

The new facility is expected to be completed by 2025, although uncertainty surrounds which Stellantis-affiliated brands will benefit from this. Given the volume, it is likely that either Fiat, Citroen, Peugeot, or Opel will serve as the project's catalyst.

According to the agreement, it shows that Africa has a lot of potential due to sales of up to 426,000 vehicles which reportedly increased significantly plus profit margins doubling from what was initially anticipated in 2021.

Despite the production site remaining unspecified, the signing ceremony suggested a location in the South African special economic zone (SEZ) to provide access like free ports and trade zones as well as further incentives.

Head Of Stellantis Middle East and Africa (MEA), Samir remarked in a statement "The manufacturing site in South Africa will be a new building block in our industrialisation strategy that includes the plan to sell one million vehicles in the region by 2030 with 70% regional production autonomy and will bring us closer to our customers' needs in the region,"

The new facility is expected to be completed by 2025, although uncertainty surrounds which Stellantis-affiliated brands will benefit from this, but given the volume, it is likely that Fiat, Citroen, Peugeot, or Opel will serve as the project's catalyst.

According to the agreement, it shows that Africa has a lot of potential due to sales of up to 426,000 vehicles which reportedly increased significantly plus profit margins have doubled from what was initially anticipated in 2021.