Stellantis Invests $300M in Morocco, Challenging Spain’s Auto Industry

With an investment of more than 300 million euros by Stellantis in its plant in Kenitra to double its production capacity and launch the electric vehicle platform, the automotive giant wants to strengthen its presence in the Middle East and Africa region. The multinational plans to manufacture one million thermal vehicles per year in the region by 2030, the year from which these vehicles can no longer be produced in Europe, reports El Periodico de Aragon.

The automotive sector is highly developed in Morocco. Nearly 250 companies, with a production capacity of around 700,000 vehicles per year and some 220,000 jobs, drive this sector. The Renault manufacturer, for example, has opened a plant in Tangier, and Stellantis has also set up and started production in June 2019. The Chinese company BYD could also soon launch electric vehicles from its base in Morocco.

But Morocco is not the only threat to the Spanish and Aragonese automotive sector. This week, the German air conditioning systems manufacturer Trox laid off 19 of the 248 employees in its Aragonese plant due to a lack of agreement with the union on the collective agreement. The group has also announced the transfer of an aluminum production line to a new plant in Morocco.

Aragon has already experienced this situation with the cable industry, which generated more than 2,000 jobs when Delphi was considered the flagship of the industry in Belchite and Tarazona. But over the years, the activity has mainly shifted to Morocco where the conditions are favorable for investment and labor is available and cheaper. The kingdom also has strategic ports like Tanger Med.