Stellantis is investing more than $300 million into its Kenitra plant in Morocco, to double its production there and create nearly 2,000 jobs. The investment is a sign of the transatlantic automaker’s ambitions in the region.
Related: How Morocco Become a Leading Automobile Production Hub
It’s looking for places of growth beyond the fairly stable North American and European markets and as the company’s prospects of significantly growing its share in China, the world’s largest automotive market, appear dim. In a statement, the CEO Carlos Tavares said:
“Stellantis’ global ambition will benefit from the strong development pace of the Middle East and Africa region that aims at contributing to creating a third engine for Stellantis, in addition to North America and Europe. I trust our regional teams to achieve sustainable growth with a number one position in the market and double-digit margin, while leading the energy transition. At Stellantis, we commit to offer our Middle East and Africa customers clean, safe and affordable mobility.”
The investment in Morocco will increase production capacity to 1 million vehicles per year with the launch of a “smart car” platform in an effort to obtain a 22% market share by 2030. Right now, the plant which was opened in 2019, produces 400,000 vehicles per year along with 50,000 EV products. The new smart-car platform is expected to underpin 40% of the region’s mobility offerings by the end of the decade.
The investment also emphasizes increasing the share of local production of the products. Stellantis sits at 69% local integration and expects it to grow to 70% by 2030. Stellantis will provide training to workers for the new positions created by the commitment.
Related: Morocco to Scale Up Electric Vehicle Production
M. Samir Cherfan, chief operating officer of Stellantis in the Middle East and Africa, said in a statement:
“We are proud to announce today a great new milestone in the journey of our industrial plant in Kenitra, in partnership with the Ministry of Industry and Trade in Morocco. Together, we have succeeded in positioning Kenitra as a leading Stellantis industrial site and in converting it into a key contributor of our bold ambition in the Middle East and Africa region, leveraging the potential of the newly launched ‘smart car’ platform that will be core to our vehicle offerings in the region by 2030.”
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