Morocco Wins American Auto Factory Over Eastern Europe

Gentex plans to begin shipments from Morocco in 2028. The company, known for its electrochromic mirrors and onboard electronic equipment, has already signed a letter of intent, selected the factory location, and obtained support from Moroccan authorities to establish its local subsidiary.

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The selected city, investment amount, site area, and expected number of jobs have not yet been announced. Discussions are also continuing on the exact product range that will be manufactured in Morocco.

Initial orders concern automatic dimming mirrors and advanced electronic modules, explained management during Gentex’s second quarter results presentation conference.

Morocco Prevails in the Comparison

Before selecting the kingdom, Gentex had studied several possible locations in Eastern Europe. The American group compared labor and social costs, geopolitical risks, inflation, customs duties, trade agreements, electrical supply reliability, and public support mechanisms.

Following this study, Morocco emerged as the "obvious choice" for the group’s long-term industrial needs, according to its chief executive officer, Steve Downing.

Proximity to the European Union and the customs conditions offered by the kingdom should allow Gentex to shorten its logistics circuits and produce closer to its customers’ assembly lines. Several automakers have already made commitments related to the future Moroccan facility.

The site will initially handle final assembly operations currently performed in the United States. Gentex will, however, retain manufacturing of the most sensitive technological components in its existing factories, which will then be shipped to Morocco for the final production stages.

This division should allow the company to meet European automakers’ demands without transferring its entire industrial expertise. It also targets Chinese brands developing automotive production in Europe and seeking suppliers capable of providing them nearby.

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Gentex acknowledges that the absence of a factory in the region could cause it to lose new European contracts to competitors already established near automakers. The Moroccan project should reduce this risk and strengthen its position in upcoming tenders.