The maker of Jeep SUVs, Ram pickup trucks and other vehicles took a step toward building a new manufacturing plant in South Africa, the company said Wednesday.
Stellantis NV has signed a memorandum of understanding with the country’s Industrial Development Corp. and Department of Trade, Industry and Competition. It’s a step toward the automaker’s goal of selling 1 million vehicles by 2030 in Africa and the Middle East with 70% of production in the region.
The plant is expected to be completed in 2025. In statement, IDC CEO TP Nchocho said the project would be a joint venture with Stellantis as it seeks to produce 1 million vehicles in South Africa. The plant will be in a South African Special Economic Zone, which can include access to free ports, free trade zones and other incentives.
The automaker declined to provide details like on the size of the investment and where the facility could be built. Stellantis CEO Carlos Tavares last week emphasized the strong results from Jeep and Ram in the region. Last year, Stellantis had 426,000 combined shipments to the Middle East and Africa, up 9.5% year-over-year, from products from German brand Opel. Its 16.7% adjusted operating income margin also was the highest of any region, resulting in $1.137 million in income for the year.
The Detroit News