South Africa received great news last week when it was announced that the Stellantis automotive group would be setting up shop right here on the tip of the continent.
Stellantis signed a Memorandum of Understanding (MOU) with the Industrial Development Corporation (IDC) and the Department of Trade, Industry, and Competition (DTIC) to create a new production facility in one of the country’s Special Economic Zones (SEZ), with the aim of completing the project by 2025.
For those who are unfamiliar, Stellantis is a relatively new organization that came into effect in January 2021 as a result of a merger between Fiat-Chrysler and France’s PSA Group.
Consequently, Stellantis is now the parent company of no less than 14 well-known car brands from around the world, which are:
- Abarth
- Alfa Romeo
- Chrysler
- Citroen
- Dodge
- DS Automobiles
- Fiat
- Jeep
- Lancia
- Maserati
- Opel
- Peugeot
- Ram
- Vauxhall
Stellantis’ arrival in South Africa is a very exciting prospect within the automotive sphere, as various models from any of these brands could soon be built right here on local soil.
However, the company has not yet revealed exactly which of these 14 brands will be made here, stating that, at the moment, it has “no further info or comment to share” about its domestic operations.
Process of elimination
There are a few different ways of looking at which Stellantis car labels could be brought to South Africa, but the easiest way to start is by looking at which brands are already operating here.
This includes Abarth, Alfa Romeo, Citroen, Fiat, Jeep, Maserati, Opel, and Peugeot, which leaves Chrysler, Dodge, DS Automobiles, Lancia, Ram, and Vauxhall as the brands with no current presence in the country.
The American Chrysler and Dodge are unlikely to be brought here, as both were pulled from South Africa in 2017 due to to the company’s decision to cease production for right-hand-drive markets.
With the exception of Ford and Jeep, American autos have been poorly received by local motorists which led to Cadillac and Chevrolet closing their doors in 2010 and 2017, respectively, and Ram’s pickups would face an uphill battle in South Africa’s hyper-competitive bakkie space that is dominated by names like the Toyota Hilux, Ford Ranger, Isuzu D-Max, and VW Amarok.
On the other hand, North America is Stellantis’ most profitable market, so it’s possible that the South African factory could be used to primarily produce export models for the U.S.
DS Automobiles is a subsidiary of Citroen which builds luxury cars with an emphasis on new-energy powertrains, as every model in their range is available as either a plug-in hybrid or fully-electric unit.
While it seems like an unlikely candidate for South Africa, representatives from across the local automotive industry have expressed their desire to turn the country into a global hub for the manufacturing of electric vehicles (EVs) – something the country is in prime position to do because of its access to the relevant materials – meaning the production and export of European EVs is not as far fetched as it initially sounds.
As for Lancia and Vauxhall, the former is a rather niche brand that’s had its ups and downs in the past and is now working on futuristic concept models not expected to appear until 2028, while Vauxhall’s cars are functionally identical to Opel’s, owing to the two names shared history under General Motors.
Car brands that could be built in South Africa
Turning our attention to the auto names that are operating in South Africa, we can look at their current offerings to get a sense of what could potentially be built here as carmakers have recently started pivoting to the belief of “build it where you sell it.”
Abarth is a performance subsidiary of Fiat and only has a single model on the market namely the 595 – a hyped-up version of the Fiat 500 – and it’s doubtful whether Stellantis would dedicate a production line to a single niche unit.
The other nameplates are much more promising, especially in light of recent local and international trends.
South Africa’s favourite cars at the moment consist of bakkies, crossovers and SUVs, and hatchbacks, which are all covered by Stellantis brands in one way or another.
Alfa Romeo’s new Tonale has received heaps of praise and is competitively priced for a hybrid crossover – its R739,900 tag being comparable to something like the Toyota Rav4 – and the Italian name also has two other units in the Stelvio SUV and Giulia sedan.
Citroen’s collection of crossovers like the C3 and C5 Aircross could also stand to benefit from being produced here, and Fiat is actually Stellantis’ best-selling brand, which bodes well for a locally-made 500, Tipo, and possibly more.
Jeep is another interesting case, as its collection of 4x4s is right up the street for many South Africans. This includes the Renegade crossover, Wrangler and Grand Cherokee SUVs, and even the Gladiator double cab.
Finally, there’s Peugeot and Opel which offer a selection of crossovers, hatches, and even a bakkie. The two French brands are also in an alliance, therefore, many of their cars share the same platform.
The best example of this is the Peugeot 208 and Opel Corsa, which sport identical architecture and powertrains.
These two hatchbacks are another good candidate for South African production, as they could mimic the success of the VW Polo – a car that is both popular locally and a major export to European markets.
Other candidates include the Peugeot 3008 and Opel Grandland, which again come with the same engine, or even the Peugeot Landtrek bakkie, which may be able to carve out a greater following in South Africa once it and its parts are domestically produced.
Keyword: New car factory opening in South Africa – Which models could be built here