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Stellantis approves R3bn local bakkie production deal from 2026
Plant will be located at the Coega Special Economic Zone in the Eastern Cape and become operational by the end of 2025.
Four of Stellantis’ 14 brands are known to be present in the bakkie segment. Image: Stellantis.
Having made the initial announcement in March, Stellantis South Africa has officially confirmed an investment of R3-billion into the building of a new bakkie at a purpose-built plant at the Coega Special Economic Zone in the Eastern Cape from 2026.
50 000 units projected
A move that forms part of its Dare Forward 2030 strategy, the investment, signed with the Department of Trade and Industry, will result in the direct creation of 1 000 jobs and targeted product localisation of 30%.
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In making the announcement, the parent company of Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Fiat Professional, Jeep, Lancia, Maserati, Opel/Vauxhall, Peugeot and Ram stated the factory, located at Coega outside Gqeberha – formerly Port Elizabeth – would enter service at the end of 2025 before starting mass assembly the following year.
Aiming for Ranger and Hilux
Conforming to the department’s Automotive Production Development Program (APDP), the unnamed but confirmed one-ton bakkie will be assembled from complete knockdown (CKD) kits in batches of up to 50 000 units, with plans further afoot to up capacity to 90 000 units per year.
“The country remains a great investment destination and this commitment from Stellantis to invest in our local motor industry highlights the success of our manufacturing sector policy, its capability and potential,” Trade and Industry Minister Ebrahim Patel said after the signing in Cape Town on Wednesday (13 September).
“South Africa currently has the capacity to produce close to 700 000 vehicles annually. This will add considerable additional capacity, just as we prepare to implement the African Continental Free Trade Area”.
According to Stellantis Middle East and Africa Chief Operating Officer, Samir Cherfan, the investment and construction of the plant “reflects our focus and trust in South Africa as one of the most important markets in Africa and Middle East”.
“It is also the execution of our Dare Forward 2030 Strategy to reach over 22% Market Share in the region by 2030 with 70% regional localisation of our sales leading to over one-million units produced”.
Likely options
Peugeot
While the announcement failed to name the bakkie that would be produced, the confirmation of a one-tonner has led to speculation that Peugeot could be assembling the Landtrek on local soil as opposed to sourcing it from China.
Jeep
Introduced last year, the Jeep Wrangler-based Gladiator is also an option, though unlikely due to its niche positioning.
Ram
Another option is the Brazilian made and developed Ram Rampage that rides on a unibody rather than traditional body-frame platform as used by the Toyota Hilux, Ford Ranger, Isuzu D-Max, Volkswagen Amarok, Nissan Navara, Mitsubishi Triton, Mahinda Pik Up and Mazda BT-50.
Fuelling the Ram claims further are comments made earlier this year by now former division boss, Mike Korval, who told Australia’s drive.com.au growing the Ram brand outside the United States and left-hand-drive markets remains a priority in the long run.
“Obviously, if we were to do right-hand-drive from the factory – which I can’t do today – that might change certain things of course, to state the obvious,” the publication quoted him as saying.
“If you were in my shoes and I think about … growing the brand globally … I want to be able to sell everywhere. That’s just an honest statement. I want to grow the brand like Jeep. I look at Jeep and what they’ve been able to do and I use that as my (goal)”.
Back in 2018, then Ram boss Mike Manley admitted interest in its products had been increasing not only from Australia, but also South Africa where Ram 1500 and 2500s are converted to right-hand-drive and sold, without Stellantis backing, by Richard’s Bay-based US Trucks Sales.
“[There’s] South Africa as well … some of the mines use right-hand drive too. It’s something we continue to look at. We’re very closely tied to those guys in those markets,” Manley told motoring.com.au at the time.
Besides the Rampage, a second bakkie, rumoured to finally revive the Dakota nameplate, is known to be development based on a body-on-frame chassis, although according to Korval, its world debut remains a number of years away.
“Obviously, Dakota, that name carries a lot of heritage. We will see. I’m not going to say ‘yes’ because it is not at this point in time, because it’s just in concept phase,” Korval told Drive.
At the same time, in-house right-hand-drive production of the Ram 1500, done with full Stellantis approval by Walkinshaw Automotive as part of a joint venture with Ateco Automotive under the American Special Vehicles banner in Australia, was not confirmed either, with Korval merely saying it is still “too early to tell”.
Fiat
Opting against Peugeot and Ram will leave Fiat as the third option, though with two possible products as the one-ton confirmation officially closes the door on the facelift Strada making a comeback due to it being a half-ton.
It, therefore, leaves the updated unibody Toro and the still-to-be-revealed Titano, spun-off of the Landtrek, as the other options should Stellantis decide availing both currently not offered or considered for right-hand-drive markets.
More details in due course
For now, nothing else is known and remains open to speculation, however, expect more details to emerge in 2024 and into 2025.
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