Stellantis has signed a Memorandum of Understanding (MOU) with the Industrial Development Corporation (IDC) and the Department of Trade, Industry, and Competition (DTIC) to open a new manufacturing facility in South Africa.
The assembly plant is currently planned to be erected in one of the country’s Special Economic Zones (SEZ) with an aim to complete the entire project by 2025.
According to the DTIC, “SEZs are geographically designated areas of a country set aside for specifically targeted economic activities, supported through special arrangements (that may include laws) and systems that are often different from those that apply in the rest of the country.”
Stellantis has not yet confirmed which vehicles it plans to produce on local soil, however.
Who is Stellantis
Stellantis was formed in January 2021, slap bang in the middle of the Covid-19 era, as a 50/50 merger of Fiat-Chrysler Automobiles and the French PSA Group.
Therefore, the organisation is the proud owner of 14 of the world’s most well-known car brands, including names like:
- Abarth
- Alfa Romeo
- Chrysler
- Citroen
- Dodge
- Fiat
- Jeep
- Lancia
- Maserati
- Opel
- Peugeot
Stellantis also has industrial operations in 30 countries and services over 130 markets on multiple continents.
“I am pleased that Stellantis is looking to South Africa to expand its manufacturing footprint,” said Ebrahim Patel, Minister of Trade, Industry, and Competition.
“South Africa is a great investment destination with significant car-making capacity. We look forward to working closely with Stellantis to enable the company to set up a plant that will expand our manufacturing base and create local jobs.”
In March 2022, the major car producer also announced its plans to reduce its carbon footprint by 50% in eight years as part of the Dare Forward 2030 roadmap, and by 2038, it wants to be a carbon net zero organisation.
Samir Cherfan, Stellantis Middle East and Africa COO, describes the recent signing of the MOU as “an important step in our Dare Forward 2030 strategic plan towards strengthening our leadership in the Middle East and Africa region and becoming a major player in South Africa.”
“The manufacturing site in South Africa will be a new building block in our industrialization 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.”
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