Stellantis South Africa plant on hold but “we have not cancelled”

The new facility was suppose to only assemble the Peugeot Landtrek for the local and export markets. Picture: Peugeot Stellantis has reportedly halted production of its long-delayed local vehicle assembly plant in the Eastern Cape over alleged revisions to the final business case. Last year, the conglomerate announced that the facility in the Coega Industrial Zone in Nelson Mandela Bay would no longer produce a single model, but three.

Initially, it would have only produced the Peugeot Landtrek in complete knockdown (CKD) form, with exports supposed to have started this year. Since confirming the plant as part of aR3-billion investment three years agothough, has since emerged. As part of the agreement with the Department of Trade and Industry, the facility would assemble Landtreks in batches of 50 000 units, with plans to expand this to 90 000 in the long-run.

The facility, which was supposed to have become operational by the end of 2025, has, however, been stagnant since 2024. This, according to a report byEngineering News, who allege plans had been put on hold to discuss the other products planned for assembly alongside the Landtrek. Addressing the publication, Stellantis South Africa Managing Director, Mike Whitfield, said it hasn’t abandoned local production plans “or cancelled the plant”.

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He, however, said “changes in the pickup” industry had left the automaker with no plans but to “reverse the overall business case for the plant”. “The plant will not be sustainable just on a pickup. We could, potentially, add two products to the project – the pickup plus two other models,” Whitfield said.

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