Stellantis: No Relocation of Factories from Italy to Algeria

The global automotive group Stellantis affirmed that Algeria presents a genuine and valuable opportunity for Italian manufacturers and suppliers to establish industrial partnerships in the vehicle and spare parts sector.

The group emphasised that its investments and industrial projects in Algeria are not aimed at relocating or transferring Italian factories abroad, but rather are based on the principle of production geared towards the Algerian market and creating local added value.

A spokesperson for the Stellantis Group clarified on February 2nd that the meeting held in Turin on Monday, as reported by several Italian media, which brought together Stellantis’ Algerian branch with approximately one hundred Italian companies active in subcontracting and automotive component manufacturing, had absolutely no connection to relocating industrial activity or directing production towards export to the European market, emphasing that the adopted model is based on “production in Algeria for the Algerian market.”

The group asserted that, “Stelantis sells in Algeria what it produces in Algeria, and the industrial ecosystem that Stelantis intends to establish in North Africa is not in competition with the European system.”

The same source added that this initiative stemmed from a firm belief in the importance of the Italian supply chain in supporting and developing the Algerian automotive market. It explained that Stellantis, in this context, was keen to involve several Algerian companies in this endeavour, intending to encourage direct dialogue and build bridges of cooperation between local operators and their Italian counterparts.

The global group indicated that this endeavour falls within its ambition to build an integrated industrial ecosystem, based on launching genuine partnerships and developing aspects of industrial integration. During the meeting, several opportunities for cooperation with Algerian partners were presented, including the supply of technology and industrial equipment, as well as the manufacture of spare parts and components.

In the same vein, Stellantis did not rule out the possibility of direct investments in developing the mechanical industry and producing automotive components locally, to exclusively meet the needs of production units in Algeria. The company said that “Stilantis sells in Algeria what it produces in Algeria,” and that the industrial system it seeks to develop in North Africa does not pose any competition to the European system.

Regarding its industrial presence in Algeria, the group explained that its activity is centred on the Tafraoui plant in Oran (western Algeria), where three models are expected to be produced this year: the Doblo utility vehicle and the Doblo Panorama. Preparations are also underway to launch production of the Fiat Grande Panda.

According to the same source, Stellantis aims to reach a total production of 90,000 vehicles by 2026, as part of a strategy to strengthen its industrial position in the Algerian market.

To conclude its explanations, the group confirmed its commitment to strengthening its industrial presence in Algeria by consolidating its various stages of production. This will allow it to move beyond simple assembly and create local added value, in accordance with Algerian regulations.

The Stellantis Group also commended the role of the Turin Industrial Union, praising its initiative in including the group in this meeting, which aims to open new horizons for Italian companies as they pursue internationalisation. This was reflected, according to the group, in the presence of representatives from SIMEST (an Italian public body specialising in financing and supporting Italian companies’ investments abroad) and the bodies responsible for promoting investment in Algeria.

For her part, Giorgia Garola, Vice President of the Turin Industrial Union, confirmed in statements reported by local media that Stellantis Algeria’s participation in this meeting is part of an effort to support companies operating in the automotive sector. She explained that “Stellantis Algeria, at the invitation of the Turin Industrial Union, participated this morning in a meeting that brought together more than one hundred companies from the Piemonte region.”

Garola explained that “this initiative falls within the framework of the Turin Industrial Union’s ongoing commitment to supporting and developing companies in the automotive sector,” noting that such meetings “strengthen the European industrial presence in the African market and allow for the building of long-term relationships based on quality, reliability, and innovation.”

The spokesperson highlighted that the companies located in the province of Turin, which specialise in manufacturing automotive components and participated in this meeting, “are highly qualified institutions, and this initiative represents a real opportunity for them to expand their activity internationally and contribute to the paths of technological innovation and sustainable industry.”