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New Stellantis factory to create 1 000 new jobs

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Stellantis South Africa hosted 44 members of the SOS Children’s Villages at the corporate headquarters in Midrand today to introduce them to possible careers in the automotive industry.

Accompanied by 14 staff members from the homes, many of them former residents themselves, the children were able to see Stellantis’s full range of seven brands that are sold and supported in South Africa as well as hear testimonies from three different members of staff who shared their own journeys in the automotive industry – and how they had broken glass ceilings.

“The automotive industry is a global one and provides a range of sustainable careers from automotive engineering to design, sales, human resources, finance and even public relations,” said Stellantis SA Head of Corporate Communications Deidre du Plessis.

“South Africa is a wonderful case in point: the automotive industry contributed to 4,9% to the country’s GDP in 2022, exported vehicles to 152 different destinations and earned R227,3-billion in foreign exchange.”

This was one of the reasons why Stellantis had chosen to invest in the construction of a R3-billion manufacturing facility in the Eastern Cape, to build vehicles for Africa, create jobs and invest in the local community as part of its circular economy philosophy, she said.

“Investing where we operate means making a significant and positive impact in the communities in which we operate and the best way to do this is to provide jobs and create hope. Hosting these wonderful children here today to show them what exists and give them something to aspire to, is a wonderful privilege and we look forward to helping them where we can on their journeys in life.”

The SOS Children’s Villages are a network of havens for abandoned and vulnerable children across South Africa building families for children in need, helping them shape their future and develop their communities.

“The automotive sector is wonderful because it allows people to enter at different educational and skills levels across a very wide range of activities as well as playing a critical role in moving the economy and contributing to it, many people take it for granted however. Today, we had an opportunity to lift the curtain and give the next generation an idea of how they can play an even bigger role in it and change their lives for the better,” said Du Plessis.

Stellantis South Africa is a wholly owned subsidiary of Stellantis NV, the world’s third largest automotive company formed from the merger of FCA and PSA in 2021. Stellantis SA has an integral role in the company’s Dare Forward 2030 strategy to produce a million units a year, with 70% localisation and achieve 22% market share in Middle East and Africa by 2030.

Stellantis to headline inaugural Nelson Mandela Bay Manufacturing Showcase

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GQEBERHA, Thursday June 5, 2024 – Stellantis is privileged to have been invited by the Nelson Mandela Bay Chamber of Commerce to open the chamber’s first ever “Bay of Opportunity Manufacturing Showcase” currently being held over two days in Gqeberha in the Eastern Cape, says Stellantis SA Managing Director Mike Whitfield.

Nelson Mandela Bay is home to most of South Africa’s automotive manufacturing and almost all the component sector and it is here where Stellantis intends building its R3-billion state-of-the art automotive assembly plant later this year.

“The project,” said Whitfield, “underlines the importance Stellantis places on Nelson Mandela Bay as an automotive manufacturing hub and a gateway for the company to build vehicles for export into the rest of Africa and the Middle East.”

The investment, he told the assembled local leaders and captains of industry, underscored Stellantis’s philosophy of the circular economy; investing in the areas in which it operates, creating jobs and stimulating the local economy.”

The building of the plant is part of Stellantis’s Dare Forward 2030 strategy to produce a million units a year, with 70% localisation and achieve 22% market share in Middle East and Africa by 20230, in tandem with the existing Stellantis manufacturing operations in North Africa: in Morocco, Algeria, Tunisia and Egypt.

Construction is scheduled to being very shortly, Whitfield said, following the finalisation of the Joint Venture agreement between Stellantis and South Africa’s Industrial Development Corporation, which will be a 49% shareholder. The ground for the 32,5ha site is being provided by the Coega Development Corporation, which has completed the removal and rehoming of all flora and fauna in terms of the environmental impact assessment report.

Construction is expected to be completed by the end of 2025, with production of the PEUGEOT Landtrek 1-ton pick-up scheduled to start in Q1 2026. The plant will directly employ 1 000 people and have an initial production target of 50 000 vehicles per year, but this will be scalable, said Whitfield, to a potential 90 000 vehicles per year, with the majority destined for export.

“But this plant will be so much more than a physical building producing vehicles, it will be a testament to the enabling environment that government and agencies like the Department of Trade, Industry and Competition, the Industrial Development Corporation and the Coega Development Corporation have created.

“Investment in the automotive industry is a long-term process and there can be no investment of any nature without a legislative environment that ensures the playing fields are levelled, the interests of investors are protected and a roadmap that guides all stakeholders,” he said.

Stellantis Forges Ahead With Coega Plant

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The final building blocks for the establishment of South Africa’s latest automotive manufacturing site have been laid, paving the way for construction to begin shortly at the Coega Special Economic Zone (SEZ) in Gqeberha, Nelson Mandela Bay the Eastern Cape.

Stellantis, the world’s third biggest automotive manufacturer by volume, and South Africa’s largest development funder, the Industrial Development Corporation (IDC) have concluded key milestones that will lead to a Joint Venture (JV). The investment estimated at R3-billion is expected to facilitate the creation of massive employment opportunities in the Eastern Cape. The Coega Development Corporation (CDC), which is supplying the ground on which the factory will be built, has begun preparing the site for the start of construction.

“I welcome the progress made with concluding all modalities with Stellantis that will enable construction to commence this year and start of production of a new auto model to roll off the assembly-line by the end of 2025. The SA auto industry is Africa’s largest producer of cars, bakkies and trucks and this new investment by Stellantis will consolidate the country’s position, helping us to achieve the goal of producing 1, 4 million vehicles by 2035. The biggest attractions for new investors are the size of the domestic market together with the auto industry masterplan, which supports local production for both South Africa and export markets. Stellantis has a strong growth vision with an excellent range of vehicles in its global stable and we look forward through this investment to increasing the range of locally manufactured cars available to motorists,” said Ebrahim Patel, Minister of Trade, Industry and Competition.

“It’s heartening to see the manner in which the combination of expertise within the collective of the Department of Trade, Industry and Competition (DTIC), the IDC, CDC and Stellantis have united to form a cross functional team that is making excellent progress,” said Minister Patel “It’s this teamwork that will realise not only having Stellantis as SA’s eighth OEM, but most importantly in realizing the plans for employment and investment in South Africa and support our industrialisation drive. We look forward to a long and mutually beneficial relationship between Stellantis and South Africa.”

Stellantis Middle East Africa (MEA) COO, Samir Cherfan; Stellantis SA MD Mike Whitfield; IDC interim CEO David Jarvis; including CDC Acting CEO Themba Khoza echoed Patel’s sentiment stating that the progress made thus far was in line with their respective organisation’s strategic development goals.

“The construction of this plant is critical to Stellantis’s Dare Forward 2030 strategy. This strategy also speaks to the South African industrialization plan which is a very important tool in helping us achieve our target to produce a million units in the MEA region by 2030 – a factor that will help us attain 22% market share in this region. Our medium to long-ter objective is to ensure that 90% of vehicles sold in the MEA region are sourced from our production plants in this region,” said Mr Cherfan.

The project is a major vote of confidence in South Africa as an investment destination and as a gateway into Africa. “We are very proud of being involved in this; the construction o this plant is a major statement of faith in this country and the capacity of South Africans to be entrusted with running a project of this magnitude. This is a factory of which we can all be proud of, not just because of what it will represent to the people of the Eastern Cape, but also because of the technological advances that it will incorporate and the environmentally conscious way that it has been planned, will be built and will be operated.” Cherfan added.

All fauna and flora have been successfully removed from the site and rehomed as per the environmental impact study conducted by Coega. “Coega is focused on delivering the finest plant for Stellantis, reinforcing the Coega SEZ as an automotive hub in the country, in line with its vision to be the leading catalyst for the championing of socio-economic development” said Coega Acting CEO Themba Koza. The impending construction of the Stellantis factory has acted as a catalyst to other investors, he said. “We have had numerous requests to support the automotive sector in Coega and to rapidly grow our planned supplier park.”

“The new company to house the Stellantis-IDC JV is on track to be registered. The milestones concluded thus far will help to kick start a project that will significantly improve the economic fortunes of the Eastern Cape,” said IDC’s Jarvis. He added that the IDC is pleased to be partnering with such a reputable automotive manufacturing company of Stellantis’s stature. “Stellantis’s success with other manufacturing plants around the world is well-known. Together, we are highlighting the IDC’s intent to continually participate and drive investment to develop the regional automobile value chain,” Jarvis commented.

The Stellantis Greenfield project in brief:

  • It will be built in a South African Special Economic Zone (SEZ) in Coega, situated near Gqeberha in the Eastern Cape province of South Africa.
  • Construction will be completed by the end of 2025.
  • A high level of localization is targeted at launch (35%)
  • Ultimate production volume of 50 000 units a year, with the majority destined for export
  • 1 000 new jobs to be created directly
  • Thousands of hours to be invested in training to develop local teams to global standards

NMBM Environmental Education Department’s Plant Handover Project

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Gqeberha, South Africa, 09 May 2024 – Following the start of the Coega Special Economic Zone (SEZ) Fauna and Flora Rescue Programme at the R3bn Stellantis development site, the Coega Development Corporation (Coega), supported the Nelson Mandela Bay Municipality’s (NMBM) Environmental Education team during an endemic plant handover at Enkululekweni Primary School in Motherwell, Gqeberha, last week.

Coega Environmental Manager, Ms. Andrea von Holdt, explained that the initiative is driven by various factors, including the promotion of environmental education, and to offer first-hand exposure to the benefits of indigenous plants.

The handover took place following the collection of aloes and other useful endemic plants from the Stellantis site in Zone 2 of the Coega SEZ, before planned site clearing and construction activity commences. While the plant species were rescued from the development site in the Coega SEZ, the allocation of plants to various schools across the city is managed by the NMBM’s Environmental Education Department.

NMBM Environmental Education Officer, Ms. Lisa Lotter said: “Enkululekweni Primary School is one of the schools identified by the Municipality as a beneficiary of this project. Considering that Enkululekweni Primary School is a new school, this plant handover drive will prove beneficial to the school, learners, and community at large.”

Enkululekweni Primary School Principal, Ms. Liziwe Kate, expressed appreciation on behalf of the school staff and learners when receiving the plants: “As the principal of this new school, it brings me great joy to be a part of such good project. Preserving the environment is one of my focus areas, having worked as an environmental body personnel at my previous school. This is an opportunity to start training these young ones on the importance of taking good care of the environment.”

Lotter explained that the project is also about teaching young people about the medicinal value of endemic plants, and the significance of preserving the environment for the greater good.

“As Coega, we are happy to contribute to environmental projects in any way we can. Our SEZ is rich in biodiversity, and this is something we value. We strive to conserve and manage our open space areas for the benefit of SEZ users and the environment. We work with various organisations to rescue plant species and ensure the conservation of biodiversity while promoting sustainable industrial development,” concluded von Holdt.

Fauna and Flora Rescue Programme at R3bn Stellantis Site in Coega SEZ

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Gqeberha, South Africa, 2 May 2024 – Last week, on 24 April 2024, the Coega Development Corporation (Coega) commenced its Fauna and Flora Rescue Programme at the R3bn Stellantis development site in Zone 2 of the Coega Special Economic Zone (SEZ). The Rescue Programme is being implemented in partnership with the Environmental Education Department of the Nelson Mandela Bay (NMB) Municipality and the Urban Raptor Project.

Coega Chief Sustainability Officer, Ms. Telly Chauke, explains that sustainability and conservation remain at the forefront of any development in the Coega SEZ, as mandated by environmental legislation and in line with organisational values. “Coega conducts compulsory plant and animal rescue activities before any construction activity commences on Coega SEZ land. While infrastructural development is our mandate, sustainable development and environmental conservation are priorities,” says Chauke.

The Fauna and Flora Rescue Programme will continue over a six-week period, involving the search for and relocation of indigenous plants, as well as animals, from the 32-hectare Stellantis site, to designated areas.

Coega Environmental Manager, Ms. Andrea von Holdt, explains that plants will be relocated to primary and high schools across the city as part of environmental education, and to investor gardens in the SEZ, while rescued animals will be relocated to sites designated in the Coega SEZ Open Space Management areas. These areas are managed in terms of Coega’s Open Space Management Plan for the conservation of faunal and floral species.

“The allocation of plants to various schools will be managed by the NMB Municipality. The relocation of animals to open space sites in the Coega SEZ will ensure that animals remain in their natural habitat,” says von Holdt.

According to NMB Municipality Environmental Education Officer, Ms. Lisa Lotter, the Programme presents an opportunity to showcase the many benefits of indigenous plants to local communities. “Conservation efforts are vitally important, and once people acknowledge the significance of these plants; we’ll be able to see a change in behaviour,” shares Lotter.
A team member from the Urban Raptor Project collecting indigenous plants on site.

Coega’s Fauna and Flora Rescue Programme demonstrates the organisation’s commitment to greening the city with our endemic and indigenous plants. It builds on the work we have previously done and is a win-win for people and the environment,” concludes von Holdt.

While the Stellantis launch event is set to take place in May 2024, the construction of the Stellantis plant is earmarked to commence in June 2024.

Kelston Motor Group welcomes Opel to its stable

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GQEBERHA, April 2, 2024 – Stellantis continues its drive to make brands easily accessible to customers through its multifranchise dealer network with the addition of Opel to an exciting new Kelston Motor Group facility in Gqeberha in the Eastern Cape.

The Kelston Motor Group already has Jeep®, FIAT, Alfa Romeo, Peugeot and Citroën brand facilities within the group. The expansion continues to bolster dealer representation across the Eastern Cape in support of Stellantis’ ambitious plans as one of the largest importers in the South African motor industry.

Stellantis’ dealer representation in the Eastern Cape continues to allow customers easy access to its brands, providing a convenient sales and aftersales experience to the majority of customers. The standards of those facilities are tightly managed to provide the best possible customer experience.

The Kelston Motor Group history stretches back in the mid-1990s when it started with a single dealership in Kariega, formerly Uitenhage. Mike McNaughton and shareholders of the group continued to build the company, adding more brands and ultimately becoming the expansive retail group it is today. The Group introduced Peugeot and Citroën into its franchise stable during the 2000s and continued to expand by adding the Jeep, FIAT and Alfa Romeo brands in 2020. With the amalgamation of these brands under the Stellantis banner, the incorporation of Opel was a logical next step.

“We’re excited to be expanding our relationship with The Kelston Motor Group, providing efficiencies for their business and our ours, which will ultimately allow more time to service customers,” says Mike Whitfield, Managing Director of Stellantis South Africa. “We’re delighted to expand the Opel footprint in the Eastern Cape, exposing this incredible range to more customers.”

Leading the team at Kelston Opel is Managing Director of the Group, Peter McNaughton. “It’s an honour to add the Opel brand to our offering This brand has a long history in the region and is very well recognised by the community of Gqeberha,” says McNaughton. “The Kelston Motor Group has become a stalwart motor retailer in the Eastern Cape – one that is driven by passion for and commitment to our customers and our province. We are looking forward to welcoming existing and new Opel customers through our doors to travel alongside us on their Opel journey.”

The expansion of Opel’s representation in the Eastern Cape coincides with Stellantis’ major investments at Coega to build a manufacturing facility. The new plant will significantly boost the local economy and contribute to Stellantis growth in the country and across the rest of Africa.

The Kelston Motor Group is complemented by outlets through the Eastern Cape and is committed to providing the best automotive solutions to the area. That potential now exists for Opel customers who can look forward to being welcomed into their comfortable waiting areas with complimentary WiFi and refreshments. Visit them at 66 17th Avenue, Broadwood, Gqeberha or www.kelston.co.za or contact them on 041 811 0300 and follow them on Facebook for all the latest deals and details.

Stellantis Invests R3 Billion in South Africa, Establishing State-of-the-Art Automotive Plant in Coega

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Stellantis has confirmed its intention to develop a greenfield manufacturing facility in Coega in South Africa with the Industrial Development Corporation (IDC) and the Department of Trade, Industry and Competition (the dtic). Minister Ebrahim Patel, senior officials from the IDC and Mr. Samir Cherfan, Stellantis Middle East and Africa Chief Operating Officer met at the Parliament Buildings in Cape Town to agree on investment in the South African motor industry.

“It is a wonderful day for all South Africans when a global company of Stellantis’ proportions decides to expand its manufacturing footprint in South Africa, to assemble completely knocked down units,” said Mr. Ebrahim Patel, Minister of Trade, Industry and Competition. “South Africa currently has the capacity to produce close to 700 000 vehicles annually. This will add considerable additional capacity, just as we prepare to implement the African Continental Free Trade Area. The country remains a great investment destination and this commitment from Stellantis to invest in our local motor industry highlights the success of our manufacturing sector policy, its capability and potential. We look forward to welcoming Stellantis to South Africa and sharing in the detailed plan for employment and investment”.

“We are delighted with the speed at which we are progressing on this project, thanks to the commitment of Minister Patel and the great collaboration with IDC, CDC and dtic teams,” commented Samir Cherfan-Chief Operating Officer Stellantis Middle East and Africa. “This project reflects our focus and trust in South Africa as one of the most important markets in Africa & Middle East. It is also the execution of our Dare Forward 2030 Strategy to reach over 22% Market Share in the region by 2030 with 70% regional localization of our sales leading to over 1 million units produced. We believe in South Africa and we intend to develop industrially and commercially bringing value to our customers”.

The manufacturing plant will be built in the South African Special Economic Zone (SEZ) in Coega situated near Gqeberha in the Eastern Cape province of South Africa. The greenfield manufacturing project is planned to complete by the end of 2025. The first launch planned early 2026 is a 1 T pick-up truck with volumes expected to reach up to 50,000 completely knocked down (CKD’s) units annually including export, in line with the industry masterplan, known as the Automotive Production Development Program (APDP). The plant will be predisposed in terms of space and painting to go up to 90K units / year.

Direct employment to support the first capacity step is expected at 1000 jobs. Stellantis will be massively investing in over 500 000 hours in training and skills to develop and support the local teams to the level of global standards. We are targeting a localization rate over 30%.

“The Coega Development Corporation (CDC) is enthralled for Stellantis to have chosen the proposed site in Coega for their Southern African manufacturing operations. Joining other major manufacturers in the area makes the Coega region the primary automotive hub in the country. The investment in the plant, employment, training and skills transfer will certainly benefit the region tremendously. “This is a much needed and welcomed economic boost for the Eastern Cape Province with an anticipated economy wide impact on the province’s GDP of R 664 million. Household income is anticipated to increase to R558.4 million within the Nelson Mandela Bay Municipality (NMBM) and R577.4 million for the entire Province. Most importantly, an anticipated 1800 jobs will be created in the Metro and around 2 097 for the EC Province,” said Khwezi Tiya, CEO the CDC.

Stellantis continues to work closely with the IDC in developing a viable joint venture (JV) partnership that will be evaluated by appropriate credit committees. “Stellantis’ success with similar manufacturing plants around the world is well-known and our planned JV with Stellantis to build another greenfield plant in South Africa is progressing well. The investment is in line with IDC’s intent to drive investment that supports the development of the regional automobile value chain,” said Mr. TP Nchocho, CEO of the IDC.

Seated from left to right: Mr Ebrahim Patel, Minister of Trade and Industry & Competition and Mr Samir Cherfan, Stellantis Middle East and Africa Chief Operating Officer Standing from left to right: Kwezzi Tiya, CEO COEGA: Ms Malebo Mabitje-Thompson, Acting Director General the dtci; Imran Sayed, Divisional Executive for Manufacturing IDC; Mr Leslie Ramsoomar, Stellantis South Africa Managing Director. Stallantis

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More Info on Stellantis Invests R3 Billion in South Africa, Establishing State-of-the-Art Automotive Plant in Coega here: Stellantis
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Address: , Coega Industrial Development Zone, Gqeberha
Author: Deidre du Plessis from Stellantis.
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