Johannesburg - Stellantis, the global automotive giant that was formed when Fiat Chrysler merged with Peugeot Citroen in 2021, has announced its intention to establish a manufacturing plant in South Africa.
On Wednesday the carmaker signed a Memorandum of Understanding with the Department of Trade, Industry and Competition (DTIC) and the Industrial Development Corporation (IDC).
Samir Cherfan, who is the Stellantis Chief Operating Officer for Africa and the Middle East, said the announcement was an important step in the company’s “Dare Forward 2030” strategic plan for strengthening its leadership in the region and becoming a major player in South Africa.
The company said the local manufacturing plant would be set up in an as-yet-unnamed Special Economic Zone, with the aim of completing the project by 2025. Stellantis is not yet ready to announce which vehicles will be produced here, but it appears that export sales are very much in the frame too.
“We are reviewing various options for brands and models that would be most suited for local and export markets. More details will be communicated at a later stage,” a Stellantis spokesperson told IOL.
Stellantis is currently a niche player on the local market, having sold an average of 358 vehicles a month in the past three months. Internationally it owns 14 brands, and in South Africa it currently markets Fiat, Alfa Romeo, Jeep, Opel, Peugeot and Citroen.
Internationally it also owns the Lancia brand, which is set for something of a revival, which will also see their products launched in South Africa, and there’s also the Ram brand, which sells pick-up trucks primarily in the Americas.
But with Ram set to expand its line-up with smaller bakkies, could the US brand be looking to tackle the local market too? It remains to be seen.
“An investment partner like Stellantis is an amazing opportunity for South Africa,” said 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,” Nchocho concluded.