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Stellantis accelerates Morocco’s rise as a key automotive production hub
Stellantis has taken a decisive step in strengthening its industrial footprint in Morocco by launching engine production at its kenitra plant. This move marks a significant evolution from vehicle assembly to a fully integrated manufacturing site capable of producing critical components like turbocharged three-cylinder petrol engines. The investment of 300 million euros aims to double the plant’s vehicle production capacity to 400,000 units annually, including thermal and electric models, reinforcing Morocco’s position as a strategic hub in the global automotive industry.
The kenitra facility, inaugurated in 2019, has rapidly evolved, now assembling electric minicars for brands such as citroën, fiat, and opel, and producing automated guided vehicles (AGVs) to optimize logistics. The recent addition of engine manufacturing not only diversifies production but also signals a partial relocation of activities from Spain, reflecting Stellantis’s strategic shift towards more competitive and flexible sites. This development underscores the growing confidence in Morocco’s skilled workforce, modern infrastructure, and advantageous geographic proximity to european and african markets.
Strategic implications for the automotive sector
The expansion at kenitra is part of a broader industrial strategy by Stellantis to adapt to changing market dynamics and regulatory pressures in europe. By enhancing its capabilities in Morocco, the group aims to better compete in emerging markets with more connected and environmentally friendly vehicles. The move also highlights the challenges facing traditional european manufacturing centers, where rising energy costs and logistical constraints are prompting companies to seek more cost-effective production bases.
The potential transfer of production for models like the citroën c4 from spain to morocco exemplifies this shift. Moreover, plans to assemble a fiat suv at the kenitra plant indicate a commitment to broadening the product range and increasing local integration. For morocco, this translates into a reinforced industrial ecosystem that drives economic growth, job creation, and technological innovation.
Challenges and outlook amid european market pressures
Despite these advances, the automotive sector in morocco faces headwinds linked to the broader crisis in europe’s car market. Declining demand, rising prices, and fierce competition from chinese and japanese manufacturers have led to a contraction in moroccan automotive exports for the first time since the pandemic. Executives from stellantis and renault have sounded alarms on the urgent need for european regulatory reforms to sustain the industry’s viability.
The situation underscores the importance of diversifying morocco’s industrial base and accelerating the transition towards electric and hybrid vehicles, which represent future growth drivers. The kenitra plant’s versatility in producing both traditional and electric vehicles positions it well to navigate these challenges, but sustained investment and strategic policy support will be critical to maintaining momentum.
Stellantis’s commitment to morocco exemplifies a strategic recalibration in global automotive production, leveraging the kingdom’s competitive advantages to build a resilient, innovative, and globally integrated industry.