The manufacturer with 14 brands has announced a “first wave of investment” of 200 million euros in its factory in Tafraoui, in Oran. This should be completed in August. It will produce four models, starting with the Fiat 500 from the end of 2023. Pending this local production, six models will be launched on the Algerian market from Tuesday, March 21 “to meet the expectations of Algerian consumers”.
The launch of several models of the Fiat brand in Algeria was the occasion this Sunday of a ceremony bringing together many Algerian officials and senior executives of Stellantis. Six in total – Fiat 500 Hybrid, Fiat 500X, Fiat Tipo, Fiat Doblò, Fiat Scudo and Fiat Ducato – are arriving on the Algerian market from Tuesday 21 March.
Eventually, four will be produced directly in Algeria, thanks to an investment of more than 200 million euros by Stellantis and its suppliers in the Tafraoui factory. Its construction, in the wilaya of Oran (territorial division of Algeria), will end in August 2023 with the production of the first Fiat 500s. Stellantis intends to produce Fiat 500 Hybrids and Fiat 500Xs there, but also “the Doblo model” , a compact van.
“Before the arrival a few years later of a brand new model, currently still in the hands of our designers,” said Olivier François, CEO of the Italian brand, in a press release, without further details.
90,000 vehicles “made in Algeria” per year
By 2026, the Tafraoui plant will create nearly 2,000 new local jobs. The manufacturer is aiming for an annual production capacity of 90,000 vehicles.
“To guarantee Algerian customers a high level of service quality, the sales and after-sales network will open 28 wilayas in Algeria by the end of 2023”, specifies the group.
This investment phase materializes the automotive specifications and the agreement concluded in November 2022 between Stellantis and the Algerian Investment Promotion Agency (AAPI). It follows the framework agreement signed on October 13th. This agreement marked the start of production, after-sales and spare parts activities for Fiat as well as the development of the automotive sector in Algeria.
Stellantis is betting on Africa and the Middle East
These investments confirm “the key place of Algeria within Stellantis’ Dare Forward 2030 Strategic Plan for the Middle East and Africa (MEA) region”, an area that currently represents nearly 5% of Stellantis’ sales. The group specifies: “This launch of the Fiat brand will pave the way for the achievement of Stellantis’ ambition to sell one million vehicles in the region by 2030”.
The group considers Africa and the Middle East as “a growing market (…) and a third driver for Stellantis, alongside North America and Europe”, its leader said in November. Carlos Tavares. It aims to achieve “a leading position and a double-digit margin”.
In addition to Algeria, the manufacturer is deploying in Morocco, where it wants to make the base of its vehicle production in Africa and the Middle East. In November, Stellantis had indicated that it was investing 300 million euros in the Kenitra plant, which will be able to manufacture 400,000 vehicles per year out of the million targeted. The site, created in 2019 with an initial investment of nearly 600 million euros, currently produces 200,000 vehicles per year.
Priority to the electrification of the North American market
Still, Stellantis’ priority for this year 2023 is rather across the Atlantic. At the end of February, the group announced that it would invest in its three factories in the northern United States. In total, 155 million dollars are invested in order to manufacture electric propulsion modules there to boost its production for the American market.
The electrification of the North American market, which remains in its infancy compared to China and Europe, is indeed its priority for this year. “As we continue our successful transition to a decarbonized future in our European operations, we are putting these same fundamentals in place for the North American market,” said Carlos Tavares.
