Stellantis has announced that it will build the Peugeot Landtrek bakkie for the local market and export at a new factory to be built in SA.
In a R3bn investment with the Industrial Development Corporation (IDC) and the department of trade, industry & competition, the multinational carmaker will build completely knocked down units of the Landtrek at a facility in the Special Economic Zone in Coega in the Eastern Cape.
The first units are due to exit the factory in early 2026, with volumes expected to reach up to 50,000 annually, including export, in line with the Automotive Production Development Programme. The plant will have the capacity to expand to 90,000 units a year.
The Landtrek double cab has been available as a full import since its launch in SA in November 2021 and is a niche player in a market dominated by pick-ups such as the Toyota Hilux, Ford Ranger and Isuzu D-Max.
At the start of production, the vehicle will be sold locally and exported into the Middle East and Africa.
The Landtrek will be built in single- and double cab variants with engine derivatives still to be finalised, Diedre du Plessis, head of marketing and communications at Stellantis SA, told Motor News.
She added that local production would help boost Landtrek sales in SA due to a wider range and localisation efforts that can be implemented.
Trade, industry & competition minister Ebrahim Patel, officials from the IDC and Samir Cherfan, Stellantis Middle East and Africa COO, met in Cape Town to agree on investment in the SA motor industry.
Patel said the country had the capacity to produce nearly 700,000 vehicles annually and the new Stellantis venture would add considerable additional capacity as preparations began to implement the African Continental Free Trade Area.
Cherfan said the project reflects Stellantis’s focus and trust in SA as one of the most important markets in Africa and the Middle East. “It is also the execution of our Dare Forward 2030 Strategy to reach over 22% market share in the region by 2030, with 70% regional localisation of our sales leading to over 1-million units produced. We believe in SA and intend to develop industrially and commercially, bringing value to our customers,” he said.
Direct employment to support the first capacity step is expected at 1,000 jobs. With Stellantis targeting a localisation rate of more than 30%, about 2,700 jobs will be created, Coega Development Corporation CEO Khwezi Tiya said.
“Joining other major manufacturers in the area makes the Coega region the primary automotive hub in SA,” Tiya said.
“The investment in the plant, employment, training and skills transfer will certainly benefit the region tremendously. This is a much-needed and welcome economic boost for the Eastern Cape province, with an anticipated economy-wide impact on the province’s GDP of R664m.”
Stellantis will invest in training and skills to develop and support the local teams to the level of global standards.
Stellantis is the fourth-largest automotive manufacturer in the world and was formed in 2021 from the merger of the Italian-American conglomerate Fiat Chrysler Automobiles and the French PSA Group.
Its brands include Alfa Romeo, Fiat, Opel, Peugeot, Citroën, Jeep and Chrysler.
Stellantis has also launched its Eurorepar spare parts business in SA. Eurorepar operates in 40 countries offering partsfor various automotive brands.
Its components have a two-year warranty backed by Stellantis SA.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.