"As we are all aware, the current global automotive market conditions have placed tremendous pressure on the industry. This has necessitated a review of the current project business case, with the objective of securing additional products to produce in the local plant from the start of production, in order to maximise the 50 000 annual volume threshold," says Des Fenner from Stellantis.

Dealerfloor approached the manufacturer about the status quo regarding earlier announcements of establishing a new plant in the Eastern Cape and what other models, apart from the announced Landtrek bakkie, might be built in the new plant.

"We believe it is prudent to complete the business case for the additional models before beginning construction. We understand that these additional products will require a change in scope for the manufacturing plant, as well as additional investments. This revised business case will result in changes to the overall project scope, cost and timing, moving the start of production to a later date," he tells us.

Des says they are pleased to announce that the groundwork stage of the project has been completed and handed over successfully. "The revised business case is currently being completed and will immediately be followed by the review and approval process by Stellantis, IDC (Industrial Development Corporation), CDC (Coega Development Corporation) and dtic (Department of Trade, Industry and Competition). As a result, the revised start of production date is expected to be in 2027," Des tells Dealerfloor.

With regard to specific models that will be built locally alongside the Landtrek bakkie, he says Stellantis is currently finalising the business case on these additional two models, which they will share as soon as it is approved.

The journey to this point:

The revised timeline represents a significant shift from the ambitious plans first unveiled when Stellantis announced its R3 billion investment in establishing a state-of-the-art plant in Coega. The investment was designed not only to stimulate economic growth in the province but also to create new job opportunities as South Africa prepared to implement the African Continental Free Trade Area.

When Minister Ebrahim Patel met with Samir Cherfan, Stellantis Middle East and Africa Chief Operating Officer, alongside senior officials from the IDC at the Parliament Buildings in Cape Town, the mood was decidedly optimistic. The greenfield manufacturing project was planned for completion by the end of 2025, with the first launch planned for early 2026 featuring the one-ton pickup truck with volumes expected to reach up to 50 000 completely knocked down units annually, including exports.

The initial announcement highlighted that the manufacturing plant would be set up in a South African Special Economic Zone, with the aim of completing this manufacturing project by 2025. TP Nchocho, CEO of the IDC, described Stellantis as an amazing investment partner, noting the company's impressive track record in manufacturing plants around the world.

The project formed a cornerstone of Stellantis's Dare Forward 2030 strategic plan, which aims to strengthen its leadership in the Middle East and Africa region by selling one million vehicles in the region by 2030 with 70% regional production autonomy. As noted during SA Auto Week, the R3 billion Greenfield site at Coega was critical to this plan, working in tandem with existing Stellantis manufacturing operations in Morocco, Algeria, Tunisia and Egypt.

Mike Whitfield, Stellantis South Africa managing director, emphasised that the investment was testament to the ongoing public private partnership that has made the South African automotive sector the continental success it has been for decades. He accredited this to the enabling environment created by government and agencies like the Department of Trade, Industry and Competition, the Industrial Development Corporation and the Coega Development Corporation.

By the time of the Nelson Mandela Bay Manufacturing Showcase, construction was scheduled to begin very shortly following the finalisation of the Joint Venture agreement between Stellantis and the IDC, which will be a 49% shareholder. The land for the 32.5-hectare site was being provided by the Coega Development Corporation, which had completed the removal and rehoming of all flora and fauna in terms of the environmental impact assessment report.

Construction was expected to be completed by the end of 2025, with production of the Peugeot Landtrek one ton pickup scheduled to start in the first quarter of 2026. The plant would directly employ 1 000 people and have an initial production target of 50 000 vehicles a year, scalable to a potential 90 000 vehicles a year, with the majority destined for export.

When key milestones were concluded between Stellantis and the IDC, Minister Patel welcomed the progress, stating he looked forward to seeing construction commence and production of a new auto model roll off the assembly line by the end of 2025. The project represents a major vote of confidence in South Africa as an investment destination and as a gateway into Africa, with a high level of localisation targeted at launch of 35%.

The current revision, whilst extending the timeline, demonstrates Stellantis's commitment to ensuring the facility's long-term viability and success in what remains a challenging global automotive market.