South Africa is preparing to start assembling vehicles on behalf of a major car manufacturer.

Stellantis, which owns among other marques Peugeot, Citroën, Opel and Chrysler, says construction of the ZAR3 billion assembly plant in the Coega Special Economic Zone in the Eastern Cape is set for May, with assembly to start next year.

According to Engineering News, the first product off the line is expected to be “a one-ton bakkie”. Production will reach an initial volume of 50 000 units a year, with capacity to scale up in future.

While Stellantis will own and operate the plant, it is being developed in collaboration with South Africa’s Industrial Development Corporation and the Coega Development Corporation. It will employ 1 000 people.

CEO Mike Whitfield says 40% of production will be targeted at the South African market, with the balance exported, mostly to the rest of the continent.

6 January 2024
Image: Stellantis