The Stellantis group has announced plans to set up a production facility in South Africa, with the first units billed to roll off the assembly line as early as 2025…

Multinational automotive group Stellantis has signed a Memorandum of Understanding (MoU) with the South African government to “develop a manufacturing facility” in the country.

The Netherlands-based corporation – which was formed in early 2021 with the merger of Fiat Chrysler Automobiles and the PSA Group – took part in a signing ceremony with South Africa’s Industrial Development Corporation (IDC) and the Department of Trade, Industry and Competition (DTIC).

In August 2022, Stellantis signed a similar MoU with Egypt’s government, before announcing a €300-million investment in its existing Kenitra manufacturing facility in Morocco in November 2022.

As a reminder, as many as 16 automotive brands fall under the Stellantis banner: Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS, Fiat, Fiat Professional, Jeep, Lancia, Maserati, Mopar, Opel, Peugeot, Ram and Vauxhall.

Details are currently thin on the ground, but the group has stated the manufacturing plant is “planned for setup” in a Special Economic Zone (SEZ), with an aimed completion date of 2025. At present, South Africa has a pair of such zones with an automotive focus: the Tshwane Automotive SEZ in Gauteng and the Coega SEZ, with the latter located in Nelson Mandela Bay in the Eastern Cape. Whether Stellantis plans to build a new facility or make use of an existing one remains to be seen.

Interestingly, TP Nchocho, CEO of the IDC, described Stellantis as an “investment partner”, saying he looked forward to a “joint venture” with the company. It’s not yet clear which vehicles Stellantis plans to manufacture locally, though its brands with a presence in South Africa include Alfa Romeo, Citroën, Fiat, Jeep, Maserati, Opel and Peugeot.

The Memorandum of Understanding was signed at Minister Patel’s offices.

Despite distributing that many brands locally, Stellantis remains a fringe player in South Africa’s new-vehicle market. In February 2023, the group registered just 312 vehicles locally, with Peugeot accounting for 95 units, Fiat 75 units, Opel 73 units, Jeep 55 units, Citroën 12 units, Alfa Romeo 2 units and Abarth failing to trouble the scorers. Maserati, meanwhile, does not report sales figures to Naamsa.

“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 South Africa,” said Samir Cherfan, Stellantis Middle East and Africa Chief Operating Officer.

“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,” he added.

Ebrahim Patel, Minister of Trade, Industry and Competition, said he was “pleased that Stellantis is looking to South Africa to expand its manufacturing footprint”.

“The company is a large global automaker, with a range of well-known brands. 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,” Minister Patel added.

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