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Global automaker Stellantis has signed a Memorandum of Understanding (MOU) with the Industrial Development Corporation (IDC) and the Department of Trade, Industry and Competition (DTIC) to build a new manufacturing facility in South Africa. The ceremony took place at the office of the Minister of Trade, Industry and Competition, Mr. Ebrahim Patel, and was attended by Stellantis executives Mr. Samir Cherfan, Stellantis Middle East and Africa Chief Operating Officer, and Mr. Leslie Ramsoomar, Stellantis South Africa Managing Director.
The proposed manufacturing plant is planned for setup in a South African Special Economic Zone (SEZ) and is expected to be completed by 2025. The project is part of Stellantis' Dare Forward 2030 strategic plan, which aims to sell one million vehicles in the region by 2030 with 70% regional production autonomy. The new facility will strengthen Stellantis' position in the South African market and bring the company closer to its customers' needs in the region.
In his statement, Mr. Patel expressed his pleasure at Stellantis' decision to expand its manufacturing footprint in South Africa. He said that the country is a significant investment destination with considerable car-making capacity. The minister further stated that the project would expand the country's manufacturing base and create local jobs.
Mr. Cherfan highlighted the importance of the manufacturing site in South Africa, calling it a new building block in Stellantis' industrialization strategy. He noted that the project would bring the company closer to its customers' needs in the region and help it achieve its Dare Forward 2030 strategic plan.
Mr. TP Nchocho, CEO of the IDC, described the investment partnership with Stellantis as an "amazing opportunity" for South Africa. He acknowledged the company's impressive track record in manufacturing plants worldwide and expressed his excitement about the joint venture to build a successful plant in South Africa.
The South African government's aim is to sell one million vehicles by 2030, with 70% regional production autonomy. The government's ambition is part of the country's economic recovery plan, which aims to create jobs and promote economic growth. The Stellantis project is expected to support this ambition, as it will create local jobs and contribute to the country's manufacturing base.
Stellantis is one of the world's leading automakers and mobility providers, with a range of well-known brands also found on our Williams Hunt showroom floor, including Citroën, Opel, and Peugeot. The company aims to become the greatest sustainable mobility tech company, not the biggest, while creating added value for all stakeholders and the communities in which it operates.
Stellantis' investment in South Africa is an important step towards our country's economic recovery plan. The new manufacturing facility will contribute to creating local jobs, strengthen Stellantis' position in the South African market, and bring the company closer to its customers' needs in the region.
