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Multinational automotive group Stellantis anticipates taking a decision on its planned R3 billion state-of-the-art greenfields automotive plant in Coega in the Eastern Cape within the next few months.<\/p>\n
It announced in 2023 that it planned to invest in the facility to produce a pickup, initially aiming to complete the project by 2025.<\/p>\n
Read:<\/p>\n
Stellantis SA MD Mike Whitfield said on Tuesday that if the decision to proceed is taken within the next three to four months, the plant will probably start production in the middle of the third quarter of 2028.<\/p>\n
Project \u2018paused\u2019<\/strong><\/p>\n Whitfield stressed that Stellantis had only \u201cpaused\u201d its plans for the plant rather than abandoned them.<\/p>\n He said the company was reassessing the project as the market shifts, driven by the arrival of Asian manufacturers and growing consumer demand for vehicles priced below R400 000.<\/p>\n As part of this review, Stellantis is evaluating the Automotive Production and Development Programme (APDP) and how it is structured.<\/p>\n Read:<\/p>\n Whitfield said the company is in discussions with the government on potential changes to the APDP and has received its full support and cooperation.<\/p>\n \u201cThere are ongoing discussions with government, looking at how they can fine-tune and support the existing motor industry,\u201d he said.<\/p>\n<\/blockquote>\n \u201cThe discussions with government include how we ensure that what we have got [as an auto industry], we do not lose.\u201d<\/p>\n Protectionism not the solution<\/strong><\/p>\n ADVERTISEMENT<\/p>\n CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n Whitfield said more protectionism is not the answer and the reality is that the only way South Africa\u2019s automotive industry will grow is if current importers become manufacturers.<\/p>\n He acknowledged that local vehicle manufacturers cannot compete, or will find it very difficult to compete, from a cost point of view with models coming out of Asia.<\/p>\n \u201cThe only way a plant or the industry is going to survive is to become more efficient and look at the opportunities the African Continental Free Trade Agreement (AfCFTA) will give us.\u201d<\/p>\n The automotive industry needs to get back to where 60% of what is sold in South Africa and sub-Saharan Africa is produced in the region, he added.<\/p>\n Whitfield said Stellantis\u2019s planning, scenarios and decision on the proposed plant will be based on current government policy.<\/p>\n<\/blockquote>\n \u201cFurther clarification will help, but we are not saying we are going to wait another year for government clarification although it\u2019s important the government moves a lot faster on [deciding] what they are going to do.\u201d<\/p>\n Production plans<\/strong><\/p>\n Despite the delay, Whitfield said Stellantis still plans to produce 50 000 vehicles annually over time at the new facility.<\/p>\n \u201cOriginally, our plant was going to be a pickup-only plant. Right now, we are reframing the plant to be able to support more than one model.<\/p>\n \u201cThat is a process that is underway to see how we can ensure that it has a very viable and sustainable business case and certainly in the next few months we hope to be able to be clear on what the next steps are on the plant.\u201d<\/p>\n Read: Can South Africa retain its industrial position on the continent?<\/p>\n Whitfield confirmed that any additional models produced at the plant would require further investment, but declined to comment on the number of jobs the project could create.<\/p>\n ADVERTISEMENT:<\/p>\n CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n He said all earthworks and ground preparation have been completed.<\/p>\n<\/blockquote>\n \u201cWe have cleared 34 hectares so certainly it\u2019s a pause and we definitely have not stopped [planning].<\/p>\n Localisation strategy<\/strong><\/p>\n \u201cOne of the key strategies from a South African point of view is to localise as well,\u201d he said, adding that SA\u00a0and sub-Saharan Africa will be 90% localised out of the region or out of Asia-Pacific.<\/p>\n He said Stellantis has grown significantly year-on-year in this market, but its investments are for the future market.<\/p>\n \u201cWe have a current market share of 1.6% in South Africa, but our view is that to be relevant in the market, we need to be at 4% to 5% by 2030.\u201d<\/p>\n<\/blockquote>\n Whitfield made the comments during a briefing on Stellantis\u2019s \u2018Fastlane 2030 strategy\u2019.<\/p>\n He said Stellantis SA cannot focus on 14 different brands; it will focus on Peugeot, Fiat, Jeep, Citro\u00ebn and Leap. The latter will drive its new energy vehicle (NEV) journey and, with its Chinese partner, is an emerging star.<\/p>\n Whitfield said about 65% of the South African market falls below the R425 000 price range, a market that Citro\u00ebn plays in, while Peugeot is focused largely on the van and pickup segments.<\/p>\n He said Jeep will become a key pillar of the business, with vehicles sourced from India and China and a model range spanning the affordable B-segment through to the D-segment.<\/p>\n Mobility solutions<\/strong><\/p>\n ADVERTISEMENT:<\/p>\n CONTINUE READING BELOW<\/p>\n<\/p><\/div>\n<\/div>\n Stellantis SA director of micromobility Kabelo Rabotho said Fiat will introduce a range of mobility solutions to the African market aimed at addressing the challenges faced by local entrepreneurs, transport operators and commuters, including urban congestion.<\/p>\n One of these will be the Fiat Tris, a 100% electric vehicle that will arrive in South Africa towards the end of 2026.<\/p>\n<\/blockquote>\n Rabotho said there is a need to provide vehicles that can operate for the last mile, both for delivery and people movement, and there are plans to assemble the Fiat Tris in SA and sub-Saharan Africa.<\/p>\n Growth strategy<\/strong><\/p>\n Stellantis chief operating officer for the Middle East and Africa Samir Cherfan said the group\u2019s ambition is to increase regional revenue by 40% while maintaining a double-digit operating margin.<\/p>\n He said growth will be driven by a major shift in vehicle sourcing, with a target of 90% of sales coming from 22 competitive model lines either manufactured within the region or imported from Asia.<\/p>\n Listen\/read: China rattles global auto sector \u2026<\/p>\n Cherfan described the Middle East and Africa as a central pillar of Stellantis\u2019s growth strategy, noting that the region is among the world\u2019s fastest-growing automotive markets.<\/p>\n It is home to around 25% of the global population today and is projected to rise to 40% in the decades ahead.<\/p>\n He said Stellantis has strengthened its position in the region, ranking second for four consecutive years, selling more than 500 000 vehicles annually, and consistently delivering double-digit profitability.<\/p>\n<\/p><\/div>\n #Stellantis #decide #multibillionrand #plant #months<\/p>\n","protected":false},"excerpt":{"rendered":" Multinational automotive group Stellantis anticipates taking a decision on its planned R3 billion state-of-the-art greenfields automotive plant in Coega in the Eastern Cape within the next few months. It announced… <\/p>\n","protected":false},"author":1,"featured_media":9981,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[1045,94,11861,6106,5661],"class_list":["post-9980","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing","tag-decide","tag-months","tag-multibillionrand","tag-plant","tag-stellantis"],"_links":{"self":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts\/9980","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9980"}],"version-history":[{"count":0,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts\/9980\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/media\/9981"}],"wp:attachment":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9980"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9980"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9980"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
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