{"id":771985,"date":"2024-05-15T08:35:00","date_gmt":"2024-05-15T06:35:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=771985"},"modified":"2024-05-15T08:59:55","modified_gmt":"2024-05-15T06:59:55","slug":"maserati-and-jeep-owner-launching-r3-billion-investment-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/motoring\/771985\/maserati-and-jeep-owner-launching-r3-billion-investment-in-south-africa\/","title":{"rendered":"Maserati and Jeep owner launching R3 billion investment in South Africa"},"content":{"rendered":"\n<p>Stellantis will start construction shortly on its R3 billion manufacturing site in South Africa.<\/p>\n\n\n\n<p>The world&#8217;s third-largest automotive manufacturer by volume will locate its site at the Coega Special Economic Zone in Gqeberha, Eastern Cape.<\/p>\n\n\n\n<p>Stellantis and the Industrial Development Corporation (IDC) are conducting a joint venture, with investment in the site estimated at R3 billion. <\/p>\n\n\n\n<p>\u201cI welcome the progress made with concluding all modalities with Stellantis that will enable construction to commence this year and the start of production of a new auto model to roll off the assembly line by the end of 2025,&#8221; said Ebrahim Patel, Minister of Trade, Industry and Competition.<\/p>\n\n\n\n<p>The group&#8217;s brands include Maserati, Jeep, Fiat, Vauxhall, Alfa Romeo, Peugeot, Citroen and more. <\/p>\n\n\n\n<p>\u201cThe construction of this plant is critical to Stellantis\u2019s Dare Forward 2030 strategy,&#8221; said Stellantis Middle East Africa (MEA) COO Samir Cherfan.<\/p>\n\n\n\n<p>&#8220;This strategy also speaks to the South African industrialization plan, which is a very important tool in helping us achieve our target to produce a million units in the MEA region by 2030 &#8211; a factor that will help us attain a 22% market share in this region.&#8221;<\/p>\n\n\n\n<p>&#8220;Our medium to long-term objective is to ensure that 90% of vehicles sold in the MEA region are sourced from our production plants in this region.&#8221; <\/p>\n\n\n\n<p>All fauna and flora have been removed from the site and rehomed as per an environmental impact study conducted by Coega. <\/p>\n\n\n\n<p>\u201cThe new company to house the Stellantis-IDC JV is on track to be registered. The milestones concluded thus far will help to kick start a project that will significantly improve the economic fortunes of the Eastern Cape,\u201d said IDC interim CEO David\u00a0Jarvis. <\/p>\n\n\n\n<p>The project includes: <\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A high level of localization is targeted at launch (35%)<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Ultimate production volume of 50,000 units a year, with the majority destined for export<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>1,000 new jobs to be created directly<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Thousands of hours to be invested in training to develop local teams to global standards<\/li>\n<\/ul>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Not all going out<\/strong> <\/p>\n\n\n\n<p>The update on the R3 billion investment comes amid a widely reported exit or scaling back of international companies in South Africa. <\/p>\n\n\n\n<p>Shell is selling its downstream business, including its 600 petrol stations, French-Bank BNP Paribas exited the domestic market, and Anglo American looks set to spin off Anglo American Platinum.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-businesstech wp-block-embed-businesstech\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"TSwlijCEPl\"><a href=\"https:\/\/businesstech.co.za\/news\/business\/771597\/big-businesses-calling-it-quits-in-south-africa\/\">Big businesses calling it quits in South Africa<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Big businesses calling it quits in South Africa&#8221; &#8212; BusinessTech\" src=\"https:\/\/businesstech.co.za\/news\/business\/771597\/big-businesses-calling-it-quits-in-south-africa\/embed\/#?secret=Zo5t3B38BP#?secret=TSwlijCEPl\" data-secret=\"TSwlijCEPl\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<p>Despite the recent scaling back, many international companies still see South Africa as an attractive investment destination. <\/p>\n\n\n\n<p>Data gathered by PwC recently showed that South Africa has seen net foreign direct investment (FDI) inflows (inflows minus outflows) most years since the global financial crisis of 2008. <\/p>\n\n\n\n<p>For example, Amazon Web Services plans to invest R40 billion in South Africa over the next ten years, and the broader group will also build a R4.5 billion head office in Cape Town. <\/p>\n\n\n\n<p>In the vehicle manufacturing space, Volkswagen Group Africa is also investing R4 billion into its manufacturing plant in Kariega, Eastern Cape, with plans to upgrade the facility in preparation for adding a third model to its production line in 2027. <\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>Read<\/strong>: <a href=\"https:\/\/businesstech.co.za\/news\/trending\/771913\/the-one-province-in-south-africa-with-more-people-unemployed-than-working-and-a-second-fast-approaching\/\">The one province in South Africa with more people unemployed than working \u2013 and a second fast approaching<\/a><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The world&#8217;s third-largest automotive manufacturer is making progress on its new R3 billion factory in South Africa.<\/p>\n","protected":false},"author":95,"featured_media":725492,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11119],"tags":[26],"class_list":["post-771985","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-motoring","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/771985","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=771985"}],"version-history":[{"count":8,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/771985\/revisions"}],"predecessor-version":[{"id":772014,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/771985\/revisions\/772014"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/725492"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=771985"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=771985"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=771985"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}