Stellantis South Africa plant on hold but “we have not cancelled”

Stellantis has reportedly halted production of its long-delayed local vehicle assembly plant in the Eastern Cape over alleged revisions to the final business case.

No assembly thus far

Last year, the conglomerate announced that the facility in the Coega Industrial Zone in Nelson Mandela Bay would no longer produce a single model, but three.

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Initially, it would have only produced the Peugeot Landtrek in complete knockdown (CKD) form, with exports supposed to have started this year.

ALSO READ: Stellantis’ local assembly plans soon to comprise three models

Since confirming the plant as part of a R3-billion investment three years ago though, has since emerged.

As part of the agreement with the Department of Trade and Industry, the facility would assemble Landtreks in batches of 50 000 units, with plans to expand this to 90 000 in the long-run.

Single product no longer viable

The facility, which was supposed to have become operational by the end of 2025, has, however, been stagnant since 2024.

This, according to a report by Engineering News, who allege plans had been put on hold to discuss the other products planned for assembly alongside the Landtrek.

Addressing the publication, Stellantis South Africa Managing Director, Mike Whitfield, said it hasn’t abandoned local production plans “or cancelled the plant”.

He, however, said “changes in the pickup” industry had left the automaker with no plans but to “reverse the overall business case for the plant”.

“The plant will not be sustainable just on a pickup. We could, potentially, add two products to the project – the pickup plus two other models,” Whitfield said.

“We are actively assessing what additional products we can bring in to ensure the long-term stability and sustainability of the project.

“This will result in changes in scope, and in the timeline. As soon as we have finished the study, we’ll be in a position to share it”.

No sharing

Despite not revealing the planned pair of models by name, Whitfield said a decision is expected “by the end of June”.

“The products we bring in will determine the start of production,” he concluded.

Whitfield also stated that sharing the facility with another brand won’t be happening either.

This after reports about Mercedes-Benz possibly embarking on a shared venture with Great Wall Motors (GWM) at its troubled plant in East London emerged this month.

Possible “other” product candidates

Locally, Stellantis’ product portfolio includes Alfa Romeo, Citroën, Fiat, Jeep, Opel, Peugeot and Chinese new energy vehicle start-up brand, Leapmotor.

Of these, Citroën has been its best-seller, with its re-positioned C3 and C3 Aircross aimed at the entry-level market segment. A third model, the Basalt, will debut later this week.

Aside from Peugeot, previous locally assembled brands include Alfa Romeo, Citroën and Opel – first under Delta Motor Corporation and then former parent company, General Motors (GM).

Of Stellantis’ current brands, Opel was the last to be locally assembled, possibly making it the most viable should approval be given. Picture: Opel

Possibly, the latter stands the best chance as previous products such as the Corsa, Astra/Kadett and Corsa Utility were all made locally.

Well known is that the Blitz will be introducing the Frontera this year as its mid-spec SUV between the Mokka and Grandland.

Also on the cards is the possible return of the Astra this year.

Next generation Fiat Strada will become a world model once again once the depicted, left-hand drive-only model bows out. Picture: Fiat

The plant’s initial focus as a bakkie facility ignited speculation that the second model could well have been the Fiat Strada that will become a right-hand drive model once the current left-hand drive-only generation bows out. Nothing has since become off it, though.

Another possible but outside option has been Ram’s long overdue Dakota that will enter production at the Belvidere Plant in Illinois next year for the US market.

Other left-field bakkie options include South American Fiat Titano and Ram 1200/Dakota, which are all based on the Landtrek but with different styling and engines.

Stay tuned

As is stands, expect clearer to only emerge by the end of June as stated.

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