Stellantis delivers on its commitment made in November 2022.
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The plant represents an initial investment of €200 million and will assemble 90,000 cars annually for Algerian market with over 35% localization rate.
Stellantis delivers on the commitment made in November 2022 announcing the start of production in its manufacturing plant in Tafraoui Algeria, a strategic move to bolster the development of the country automotive sector through localized manufacturing of Fiat models, including Fiat 500 and Fiat Doblò, and to further strengthen Stellantis’ market share in the Middle East and Africa region.
On this occasion, a Letter of Intent has been signed between Stellantis and the Algerian Authorities to accelerate Stellantis contribution to the development of the Automotive Industry; a step 2 ambition, in terms of production capacity, local integration rate and the creation of a Stellantis Academy in partnership with the Algerian Education Ministries.
This new phase is associated with conditions of success that are being discussed between the two parties.
"Today, a letter of intent regarding the expansion of Stellantis' industrial project in Algeria will be signed to increase the production capacity of this plant, which will be oriented towards the local and export markets," declared Ali Aoun, Minister of Industry and Pharmaceutical Production, during his speech.
"We, as public authorities, commit to ensuring the support of all investment projects aimed at creating wealth and employment."
This development follows the automotive specifications agreement signed in November 2022 with the Algerian Investment Promotion Agency (AAPI), confirming a framework agreement signed on October 13, 2022.
The agreement initiated the development of industrial, aftersales, and spare parts activities for FIAT. Stellantis and its suppliers have committed an initial investment exceeding €200 million for the manufacturing of four models.
The Tafraoui plant, covering an area of 80 acres, will initially have an annual assembly capacity of 90,000 cars, featuring a range of four models, beginning with the Fiat 500 and the Fiat Doblò.
In 2024, we aim to produce 40 000 units in SKD. The plant will reach 90 000 units in CKD including painting welding and stamping by 2026.
The industrial project has already created 500 direct jobs in Algeria in 2023, with the aim of reaching 1,200 jobs by end of 2024 and 2,000 jobs by 2026.
In addition, the local supplier ecosystem will create over 1,600 indirect jobs by 2026.
Stellantis is committed to supporting Algerian authorities in developing the automotive industry and serve Algerian customers.
The long-term commitment also includes developing a local supplier’s ecosystem and achieving a localization rate surpassing 35% in 2026, two years ahead of the regulatory threshold of 30%.
Additionally, knowledge and technology transfer are key and will be focusing on mastering advanced technologies, including electrified and electric vehicles.
The current Stellantis and Suppliers operational teams have already undergone 125,000 hours of training in 2023; while the network staff has been trained over 15 000 hours.
In addition, an “Automotive†University Diploma has been created for the factory technical and management teams and processes to guarantee Customer Satisfaction have been developed and deployed across the commercial network.
The inauguration ceremony, chaired by Mr. Ali Aoun, Minister of Industry and Pharmaceutical Production, featured Mr. Carlos Tavares, Stellantis Chief Executive Officer, Mr. Valentino Valentini, Vice Minister of Enterprises and Made in Italy, HE. Mr. Giovanni Pugliese, Ambassador of Italy in Algeria, Mr. Saïd Saayoud, Wali of Oran, Mr. Samir Cherfan, Stellantis Middle East and Africa Chief Operating Officer, Mr. Olivier François, FIAT Chief Executive Officer, Mr. Florian Huettl, Opel and Vauxhall Chief Executive Officer, Mr. Arnaud DEBOEUF, Chief Manufacturing Officer and Mr. Hakim Boutehra, Managing Director of Stellantis Algeria, Tunisia. ■