Stellantis to Build Assembly Plant in South Africa
Stellantis is set to expand its manufacturing footprint in South Africa by building a plant in a Special Economic Zone (SEZ), which is expected to be completed by late 2025.
This is an important step in the automaker’s Dare Forward 2030 plan, which aims to increase Stellantis market share in the Middle East and Africa. "The manufacturing site in South Africa will be a new building block in our industrialization strategy that includes the plan to sell 1 million vehicles in the region by 2030 with 70% regional production autonomy and will bring us closer to our customers' needs in the region," says Samir Cherfan, COO, Stellantis Middle East and Africa (MEA), in a statement.
"We are pleased that Stellantis is looking to South Africa to expand its manufacturing footprint," says Ebrahim Patel, South Africa Minister of Trade, Industry and Competition. "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."
The Dare Forward is the company’s strategy to achieve carbon neutrality by 2038. Stellantis describes the strategy as a “holistic plan” built upon three pillars: care, tech and value. Through the program, Stellantis aims to double its Net Revenues by 2030 when compared to 2021, and sustain double-digit Adjusted Operating Income margins throughout the decade.
Mexico has a unique opportunity to become an EV powerhouse thanks to its large domestic market and manufacturing capacities, according to Carlos Zarlenga, President of Stellantis Mexico, as reported by MBN. However, Mexico needs to take the right decisions to become the main actor in the manufacture of EVs for the US market, he adds.
Zarlenga points out that the most important automakers are planning to go emission neutral by 2038, while also investing heavily in building a fully electric portfolio, a trend that reinforces the urgency to act now to capitalize on this opportunity.