An announcement regarding the facility is expected within the coming months.
Local production of the Peugeot Landtrek was supposed to have started last year. Picture: Peugeot
Having announced a delay in the construction of its factory in the Coega IDZ in the Eastern Cape in March, Stellantis South Africa has reportedly placed the process “under review”, with an announcement expected in due course.
From announcement to delay
Announced as part of a R3-billion investment three years ago, the facility had been set to built the Peugeot Landtrek in complete knockdown (CKD) kit form from last year, with exports supposed to have started this year.
Initially, the agreement with the Department of Trade and Industry called for a yearly offset of 50 000 units, with the ability to expand this to 90 000 if deemed necessary.
Stagnant since 2024, Stellantis CEO Mike Whitfield was quoted in March as saying, “we have not stopped or cancelled the plant. The pickup industry has, however, changed dramatically in the last few years, with a lot of new entrants”.
In conversation with Engineering News, Whitfield stated, “we are revising the overall business case for the plant, which means that we could, potentially, add two products to the project – the pickup plus two other models.
“The plant will not be sustainable just on a pickup. We are actively assessing what additional products we can bring in to ensure the long-term stability and sustainability of the project”.
At the same time, Whitfield also ruled-out the possibility of sharing the plant with a non-Stellantis brand.
Paused
According to the latest report by Reuters, though, manufacturing is still being reviewed to produce the rumoured three models.
“We certainly have not stopped that process. We put it on pause. We’ve seen the market changing significantly with the advent of Asian players, the buy down to below R400 000,” the publication quoted Whitfield as saying.
“I think three and a half years ago… 94% of all pickups sold here in Africa were effectively made here. Now it’s down to 70-something”.
Announcement soon
In Africa, Stellantis’ other plants are found in Morocco and Alegria, which mainly produces left-hand drive products.
As mentioned, an announcement regarding the South African plant is expected in due course.
