Production of the Stellantis factory in Gqeberha is expected to commence shortly. File picture: Denis Charlet / AFP
Stellantis has put the finishing touches on a deal that will see it building bakkies in South Africa from late 2025.
The automotive giant has concluded the key milestones that will lead to a venture with South Africa’s largest development funder, the Industrial Development Corporation (IDC).
This paves the way for the imminent construction of a brand new factory at the Coega Special Economic Zone (SEZ) near Gqeberha in the Eastern Cape. The Coega Development Corporation (CDC) has begun preparing the site for construction to commence and the plant is expected to be completed by the end of 2025.
Stellantis previously announced that it would produce the Peugeot Landtrek one-tonne bakkie at the local facility, following the R3 billion investment that is expected to directly create 1,000 new jobs.
The carmaker is aiming to achieve a local content level of 35% at launch. While initial volume projections have not been disclosed, Stellantis is aiming to ultimately produce 50,000 units a year at the local facility, most of which will be exported.
Stellantis is aiming to attain a 22% market share in the Middle East Africa (MEA) region by 2030, which would equate to at least a million units annually, said Samir Cherfan, COO for MEA region. He added that the company’s long-term goal was to ensure that 90% of the vehicles sold in the region were produced in the region.
Cherfan said the new plant was a major vote of confidence in South Africa as an investment destination and a gateway into Africa.
Stellantis owns a multitude of car brands, including Peugeot, Citroen, Opel, Fiat, Alfa Romeo and Jeep. At this stage the company has only announced local production of the Peugeot one-tonne bakkie.
“It’s heartening to see the manner in which the combination of expertise within the collective of the Department of Trade, Industry and Competition (DTIC), the IDC, CDC and Stellantis have united to form a cross functional team that is making excellent progress,” said Trade Minister Ebrahim Patel.
“It’s this teamwork that will realise not only having Stellantis as SA’s eighth OEM, but most importantly in realising the plans for employment and investment in South Africa and support our industrialisation drive.”
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