(MENAFN) In a significant development, the Italian company Fiat, a subsidiary of the Stellantis group, inaugurated a car assembly plant in Oran, western Algeria, marking a substantial investment in the Algerian automotive industry. The newly opened facility, with an initial production capacity of 50,000 cars per year across four models, underscores Fiat's commitment to the Algerian market.
Carlos Tavarez, CEO of the Stellantis Group, expressed confidence in the Algerian market during the opening ceremony, highlighting the completion of the factory in a record time of one year. Tavarez announced plans for the factory to have a production capacity of 90,000 cars per year, indicating a robust outlook for future expansion. Additionally, the Stellantis Group has inaugurated 50 sales showrooms managed by 900 employees, aimed at selling nine Fiat and Opel models. Notably, a substantial number of Fiat and Opel cars were imported to meet market demand in 2023, leading up to the official opening of the factory.
Addressing the localization aspect, Tavarez pledged to increase the percentage of locally manufactured car parts to 35 percent by 2026. This commitment involves incorporating metal structure and paint processes, surpassing the government's target of reaching 30 percent by the designated date. The emphasis on local manufacturing is poised to contribute significantly to the development of the Algerian automotive sector.
The opening ceremony was attended by the Algerian Minister of Industry, Ali Aoun, who highlighted the strategic importance of the Fiat factory. Aoun stated that the plant would initially produce 50,000 cars per year, with plans to scale up to 80,000 cars by 2026, leading to the creation of 1,200 jobs. He emphasized that the Fiat factory serves as a crucial starting point for the establishment of a robust and sustainable automotive industry in Algeria.
In November, the Stellantis Group solidified its commitment to the Algerian market by signing an agreement and a book of conditions with the Algerian Ministry of Industry. The agreement outlined plans for car imports and the establishment of the factory within a year, with a significant investment of 200 million euros. The move by Fiat comes at a time when the Algerian car market has faced challenges due to governmental decisions to halt car imports and close assembly factories, with a renewed focus on developing a comprehensive local automotive industry.
MENAFN12122023000045015682ID1107576983
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.