Stellantis suspends its plant in South Africa and focuses on its Kenitra hub

Stellantis has just temporarily suspended its project for a plant in the Eastern Cape province. The manufacturer, which had initially planned to start assembling a pickup truck this year, has decided to revise its business model in the face of the rapid evolution of this segment and the arrival of new entrants.

On Bladi.net: Automotive: Why Volkswagen could abandon South Africa for the Moroccan "hub"

"We have not stopped or canceled the plant," said CEO Mike Whitfield, warning, however, that the site "will not be viable with just a pickup truck." The group, which is studying the addition of new energy vehicles, is also relying on its already active assembly operations in Morocco and the rest of North Africa. Morocco, an ideal alternative for the electric transition

These strategic hesitations echo the structural difficulties encountered by Volkswagen. The German manufacturer is seeing a clear slowdown in the South African model, where production is barely plateauing at 610,000 vehicles per year, an insufficient critical volume to ensure the competitiveness of suppliers.

The situation is all the more worrying as Europe absorbs 76% of the brand’s South African exports. Yet the delay of local plants in the transition to electric mobility exposes the company to imminent financial risks, particularly heavy penalties related to carbon dioxide emissions.

On Bladi.net: Stellantis plans to transfer the production of the Citroën C4 from Madrid to Kenitra in 2029

In this rapidly changing landscape, the Kingdom stands out for its energy stability and proximity to the European continent. Equipped with a robust ecosystem and ready to integrate the new electric value chains, Morocco represents a major opportunity to secure the exports of these global manufacturers.