Stellantis has reportedly put its plans to establish a vehicle production facility in South Africa on hold while it mulls the possibility of adding more production lines.
Last week, Bloomberg published an article on the state of the South African car industry, highlighting the struggles that have caused several factories to shut down in recent years.
In addition to closures of existing plants, the country’s tumultuous economic landscape has caused a number of carmakers to re-evaluate their plans for our market.
One of these companies is Stellantis, a global manufacturer that represents several different car brands, including Alfa Romeo, Fiat, Jeep, Citroen, Opel, and Peugeot.
Back in 2023, Stellantis announced its intention to build a brand-new vehicle assembly plant in South Africa, which will produce vehicles for the domestic market and for export to other countries in Africa and the Middle East.
The company signed a memorandum of understanding with the Industrial Development Corporation, setting in motion a plan for a R3-billion factory that was initially set to be completed by early 2026.
At the time, Stellantis confirmed that the site, which would be being built at the Coega Special Economic Zone on the outskirts of Gqeberha in the Eastern Cape, would produce the Peugeot Landtrek – a midsize bakkie.
Progress on the site advanced at a steady pace, with Stellantis providing updates when the project completed its environmental impact study, relocated the existing flora and fauna, and cleared the plot to begin construction.
In 2024, the automaker announced that it would soon break ground on the site, and that construction would wrap up by the end of 2025, with the first models set to roll off the assembly floor by early 2026.
However, updates since then have been few and far between. When TopAuto emailed Stellantis in October 2025 to ask about the factory’s progress, we received no response.
Eastern Cape factory plans paused – But not cancelled
Stellantis CEO Mike Whitfield recently told Bloomberg that the company has paused its plans to build its Landtrek factory in South Africa.
The CEO also spoke with Engineering News, where he explained the rationale behind the pause.
He stated that Stellantis has not cancelled the factory, but that the market has drastically shifted within the last few years.
In particular, the bakkie landscape has evolved with the emergence of several new models, many of which hail from China.
Whitfield explained that they aren’t abandoning the Landtrek, but that they are considering adding two additional cars to the assembly line to improve the business case for the Eastern Cape facility.
“The plant will not be sustainable just on a pickup,” he said.
“We are actively assessing what additional products we can bring in to ensure the long-term stability and sustainability of the project.”
However, Whitfield said they are hopeful that they will be able to complete the study and share their findings by the end of June.
Interestingly, one of the products under consideration for the plant is a new-energy vehicle, which could either be a hybrid or battery-electric model.
Considering how many cars fall under the Stellantis umbrella, it’s hard to say which model this could be, especially since most of the company’s brands are steadily expanding their electrified rosters.
Headline image credit: Construction Safety
Loading ...
