Stellantis launches Fiat brand in Algeria, to locally produce six models

First wave of investments from Stellantis and its suppliers totals over 200 million euros (Rs 1,757 crore); start of production of Fiat 500 Hybrid in December 2023 

Autocar Pro News Desk By Autocar Pro News Desk calendar 24 Mar 2023 Views icon5360 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp

Stellantis has launched the Fiat brand in Algeria and announced plans for local production of six carlines: Fiat 500 Hybrid, Fiat 500X, Fiat Tipo, Fiat Doblo, Fiat Scudo and Fiat Ducato.

“Supporting the Fiat project and hence, the development of the automotive ecosystem in Algeria has an historical symbolism that reflects the long-lasting good relations between the two countries. By combining our efforts, this project will become a benchmark in terms of integrability and complementarity. Currently, we are conducting a study in the factory which is likely to open up great horizons to go beyond the primary ambitions,” said Ali Aoun, Minister of Industry and Pharmaceutical Production.

This investment phase materializes the automotive specifications agreement signed on November 2022 with the Algerian Investment Promotion Agency (AAPI) ratifying the framework agreement signed on October 13, which launched the development of industrial, aftersales and spare parts activities for Fiat, one of Stellantis’ iconic brands, as well as the development of the automotive sector in Algeria. The first wave of investments from Stellantis and its suppliers will total over 200 million euros (Rs 1,757 crore) to manufacture the four models.

Today, Algeria is positioned as one of the key contributors to Stellantis Middle East and Africa (MEA) Dare Forward 2030 strategic plan. This launch of FIAT brand will pave the way to achieve Stellantis MEA ambition to reach one million vehicles sold in the region by 2030 with 70% regional production autonomy bringing us closer to customers’ needs.

The Tafraoui-Oran plant construction phase will be completed by August 2023 and production for the first Fiat 500 is planned by end-2023. By 2026, it will create nearly 2,000 new local positions, reach a localisation rate of over 30%, a production capacity of 90,000 vehicles per year and ultimately produce four Fiat models. To ensure a high level of service for Algerian customers, the sales and aftersales network will cover 28 Wilayas in Algeria by end 2023.

“Stellantis is committed to Algeria and will provide its extensive global and regional know-how in terms of manufacturing and commercial performance. We are bringing this expertise at the service of the Fiat project in Algeria to deliver state-of-the-art manufacturing and best-in-class commercial services to ensure the best customer experience in the market,” said Samir Cherfan, Chief Operating Officer, Stellantis Middle East and Africa.

“This morning we celebrate the return to Algeria of Fiat: an iconic brand with one of the five longest automotive traditions in the world. Since 1899 our brand's mission hasn’t changed: providing accessible, intelligent answers to each customer’s mobility needs. The 500 Hybrid will be the first Fiat to be built here followed rapidly by the Doblò and, in a few years, a brand-new model – now still in the hands of our designers – will also be produced in Algeria. But, today, we are already opening orders for the 500 Hybrid and for two ‘family stars’: Tipo and 500X, as well as for our ‘stars of the LCV world’: Ducato, Scudo and Doblo. So, in Algeria, there’s already a Fiat for every need,” said Olivier Francois, Fiat brand CEO.

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