The manufacturing facility in Tafraoui, Algeria promised by Stellantis in 2022 is now a reality with the start of production of Fiat 500 and Doblò models in a plant that saw an initial investment of €200-million and will assemble 90 000 cars annually for the Algerian market with a 35% localisation rate.
A Letter of Intent was 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."
"Our Dare Forward 2030 plan envisioned Algeria being cemented into Stellantis’ regional future, and today we’re proud to have followed through on this plan by bringing Fiat brand to the country and providing great models to our Algerian customers through the manufacturing of the cars in Algeria,” said Stellantis CEO Carlos Tavares. “This is the beginning of a journey of growth and development for the benefit of the citizens of Tafraoui and Algerian customers. With today’s further announcement, we are poised to increase our commitment towards the country.”
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, it aims to produce 40 000 units in SKD. The plant will reach 90 000 units in CKD including painting welding and stamping by 2026.
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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 more than 1 600 indirect jobs by 2026.
Stellantis launched its commercial operations in Algeria in March this year and has had a very strong ramp-up, closing the year with more than 50 points of sales covering 65% of the Algerian territory while offering nine models and two brands: Fiat and Opel; with a team with close to 900 people and a robust logistics setting to deliver daily cars to our esteemed Algerian customers.
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