Image: Stellantis
Image: Stellantis
Image: Stellantis
Industry NewsBy: Alex Shahini
As part of the Dare Forward 2030 ambition, Stellantis has signed a framework agreement with South African stakeholders to manufacture vehicles locally, with ambitions to compete against the likes of Volkswagen and Toyota in the region.
Image: Stellantis
A major announcement in the South African motoring industry, Stellantis has just signed a Memorandum of Understanding (MOU) with the Industrial Development Corporation (IDC) and the Department of Trade, Industry and Competition (the dtic) to develop a manufacturing facility in South Africa. The signing ceremony took place at the office of Mr. Ebrahim Patel, Minister of Trade, Industry and Competition, and was attended by Mr. TP Nchocho, CEO of the IDC, Mr. Samir Cherfan, Stellantis Middle East and Africa Chief Operating Officer, and Mr. Leslie Ramsoomar, Stellantis South Africa Managing Director.
Image: Stellantis
The details of where the facility will be aren’t clear however the manufacturing project is earmarked for completion by 2025 in a South African Special Economic Zone (SEZ). This will help strengthen Stellantis in the South African market, akin to its industrial might in South America, particularly Brazil. This isn’t their first rodeo either, with a first foray locally spearheaded by Fiat and Alfa Romeo which came to an end as a result of diplomatic sanctions during Apartheid. Related: Two New Fiat Models Will Debut In 2023
Stellantis has ambitions with the Dare Forward 2030 ambition to sell one million vehicles by 2030 with 70% regional production autonomy. This will put it in contention with other industry giants like Toyota and Volkswagen who have remained firmly entrenched in South Africa for decades. It is unclear which brands within the Stellantis umbrella are planned to capitalize on this but based on the volume it would likely be Fiat, Citroën, Peugeot or Opel who will catalyze the project.
“I am pleased that Stellantis is looking to South Africa to expand its manufacturing footprint,” Mr. Ebrahim Patel, Minister of Trade, Industry and Competition said today. “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,” he said.
Image: Stellantis
“An investment partner like Stellantis is an amazing opportunity for South Africa,” said Mr. TP Nchocho, CEO of the IDC. “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 South Africa. Another brick in the foundation towards our target of producing a million cars locally in SA.”
The past has yielded some special creations from the brands within the umbrella of the auto-making giant and they will presumably want this to be the start of its second fruitful chapter locally. Does it have what it takes to rival the current local manufacturing leaders though?
Keyword: The return of Fiat to SA? Stellantis signs accord for local manufacture