Stellantis has announced it has signed a Memorandum of Understanding (MOU) with the Industrial Development Corporation (IDC) and the Department of Trade, Industry and Competition (dtic) to develop a manufacturing facility in South Africa.

“I am pleased that Stellantis is looking to South Africa to expand its manufacturing footprint,” said Mr Ebrahim Patel, Minister of Trade, Industry and Competition. “The company is a large global automaker with a range of well-known brands.

“South Africa is a great investment destination with significant carmaking 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.”

Said Mr Samir Cherfan, Stellantis Middle East and Africa Chief Operating Officer, “This is an important step in our Dare Forward 2030 strategic plan towards strengthening our leadership in the Middle East and Africa region and becoming a major player in South Africa.

“The manufacturing site in South Africa will be a new building block in our industrialisation strategy that includes the plan to sell one million vehicles in the region by 2030 with 70 per cent regional production autonomy and will bring us closer to our customers’ needs in the region.”

Mr TP Nchocho, CEO of the IDC, added: “An investment partner like Stellantis is an amazing opportunity for South Africa. Their track record in manufacturing plants around the world is impressive, and we look forward to a joint venture with Stellantis to build a successful plant in South Africa. Another brick in the foundation towards our target of producing a million cars locally in SA.”

The manufacturing facility is planned to be set up in a South African Special Economic Zone (SEZ). The aim is to complete the project by 2025.