Stellantis Accelerates Industrial Commitment to North Africa

Stellantis is significantly ramping up its industrial strategy in North Africa, with the Kenitra plant in Morocco boasting a production capacity of 535,000 units, which is on par with the output of its facility in Vigo, Spain. Recently, the Moroccan factory commenced the production of two new Fiat models—the Grizzly SUV and the Fastback sports crossover—both utilizing the innovative Smart Car platform. This addition complements the electric microcars already being produced at the facility, including the Citroën Ami, Opel Rocks-e, and Fiat Topolino. With this expanded capacity, the Kenitra plant is set to exceed half a million units, encompassing both passenger cars and micro-mobility vehicles. In contrast, the Vigo plant produced just over 550,000 units last year, achieving a historic record and reaffirming its leadership in production within the Stellantis group.

Growing Workforce and Strategic Investments in the Region

Currently, the Kenitra facility employs approximately 7,000 workers, with plans to increase this number to over 9,300 by the end of the year. This information was shared by Samir Cherfan, Stellantis's Director of Operations for the Middle East and Africa, through a post on social media citing “7 News Morocco.” Established in 2019, the Kenitra plant underwent an expansion last year, with Stellantis investing €300 million as part of its growth strategy in the Middle East and Africa (MEA) region. Additionally, the company has committed €200 million in Tafraoui, Algeria, where it is manufacturing Fiat vehicles, including the Doblò van, which is also produced in Vigo. Stellantis has plans for a new factory in Algeria for Opel vehicles and already operates a facility in Egypt in partnership with a local entity, as well as another in Turkey with Tofas.

The multinational's strategic focus on North Africa has attracted numerous component suppliers to the region. For instance, Benteler, which has plants in Vigo and Mos, has recently launched a new facility in Morocco that will supply parts for vehicles, including the upcoming model assigned to the Stellantis plant in Balaídos.

Antonio Filosa, CEO of Stellantis Group, emphasized that "closing factories is not the solution" to the challenges facing the automotive sector; instead, collaboration with partners, particularly from China, is key. He expressed this view during a meeting with French business leaders at Medef held in Paris, as reported by “Milano Finanza.” Filosa highlighted the significance of Chinese manufacturers as a potential response to the overcapacity issues in Europe, which have arisen due to a market downturn. He cited the example of Stellantis's plant in Rennes, which will share production with a high-end brand from Dongfeng.

Recently, Stellantis and Dongfeng Motor Group finalized an agreement for the joint industrialization of Peugeot and Jeep vehicles in China. Stellantis has also launched a joint venture with another Chinese manufacturer, Leapmotor, to produce vehicles in Europe, with the Figueruelas plant in Zaragoza set to commence production with a new model this autumn.

As reported by atlantico.net.