• Automaker Stellantis is set to construct a massive car factory in the Eastern Cape, with an investment of R3 billion.
• The facility is set to provide jobs to locals, with the company aiming to hire thousands.
• Stellantis manufacturers vehicles for brands like Peugeot, Chrysler, Dodge and more.

Job seekers in the Eastern Cape province, specifically around Gqeberha, are set to benefit from the establishment of South Africa’s latest automotive manufacturing site after a partnership with the Industrial Development Corporation (IDC) and carmaker Stellantis.

According to the Department of Trade, Industry and Competition, Stellantis is the third-largest automaker in the world by volume, and produces cars for brands like Peugeot, Chrysler, Dodge, Citroën and more.

The automaker is said to build a massive manufacturing facility in the Eastern Cape, called a Special Economic Zone (SEZ), which is being developed by the Coega Development Corporation (CDC). An SA News report posits that R3 billion is being invested in the zone’s development, which means new jobs in the construction of the factory, and in the automaking process itself for Eastern Cape locals.

According to Trade and Industry Minister Ebrahim Patel, the facility should start producing cars by the end fo 2025.

“I welcome the progress made with concluding all modalities with Stellantis that will enable construction to commence this year and start of production of a new auto model to roll off the assembly line by the end of 2025,” he enthused.

“The SA auto industry is Africa’s largest producer of cars, bakkies and trucks and this new investment by Stellantis will consolidate the country’s position, helping us to achieve the goal of producing 1.4 million vehicles by 2035,” Patel added.

As for Stellantis, the company is hoping the facility will increase its market share in the region, which it hopes will reach 22 percent by 2030.

“Our medium to long-term objective is to ensure that 90% of vehicles sold in the MEA region are sourced from our production plants in this region,” said Stellantis Middle East Africa (MEA) COO, Samir Cherfan.

“This is a factory of which we can all be proud of, not just because of what it will represent to the people of the Eastern Cape, but also because of the technological advances that it will incorporate and the environmentally conscious way that it has been planned, will be built and will be operated,” he added.

At the tail end of 2022, the South African government celebrated the establishment of a Ford SEZ in Tshwane, set to be one of the three locations worldwide to produce the new Ford Ranger model. As of 2024, the facility is already producing cars.

Over 12 000 jobs were created as of the development of the Tshwane SEZ, with over 2 800 of those jobs permanent employment positions. Meanwhile, Engineering News reports that the Stellantis facility is aiming to provide jobs for around 1 000 Eastern Cape residents.

[Image – Lenny Kuhne on Unsplash]