Stellantis has signed a memorandum of understanding (MOU) with the Industrial Development Corporation (IDC) and the department of trade, industry and competition to manufacture vehicles in SA.
The company presently imports the Alfa Romeo, Citroën, Fiat, Jeep, Opel and Peugeot brands, which sell in relatively low volumes. Stellantis sold 218 vehicles locally in February in a total market of 45,352 units.
It has not confirmed which brand it plans to build nor where the plant will be located, saying only that the factory will be planned for set-up in a special economic zone (SEZ) by 2025.
“I am pleased that Stellantis is looking to SA to expand its manufacturing footprint,” trade, industry and competition minister Ebrahim Patel said at the signing ceremony in his office.
“The company is a large, global automaker with a range of well-known brands. SA 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,” he said.
The signing ceremony was attended by TP Nchocho, CEO of the IDC; Samir Cherfan, Stellantis Middle East and Africa COO; and Leslie Ramsoomar, MD of Stellantis SA.
“This is 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 SA,” said Cherfan.
“An investment partner like Stellantis is an amazing opportunity for SA,” said the IDC’s Nchocho. “Their track record in manufacturing plants around the world is impressive and we look forward to a joint venture with Stellantis to build a successful plant in SA. Another brick in the foundation towards our target of producing 1-million cars locally in SA.”
In 2022 there were 528,963 new vehicles sold in SA, combining imports and locally assembled vehicles, for a 13.9% gain on 2021.
Ford, Toyota, BMW, Mercedes-Benz, Isuzu, Nissan, Volkswagen, Mahindra and BAIC already have car factories in SA.
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