ALBAWABA - Italian company Fiat, a subsidiary of the Stellantis Group, inaugurated a car assembly plant in Oran, western Algeria, on Monday, with an initial production capacity of 50,000 vehicles per year across four models.
Carlos Tavares, the CEO of the Stellantis Group, affirmed during the opening ceremony, "We completed the factory in record time, one year, with a production capacity of up to 90,000 vehicles per year, demonstrating our confidence in the Algerian market."
He added that the group has "opened 50 sales outlets managed by 900 employees to sell 9 models from the Fiat and Opel brands. Additionally, 75,000 Fiat cars and 3,000 Opel cars have been imported" to be introduced to the Algerian market in 2023, ahead of the factory's opening.
Tavares pledged that the percentage of locally manufactured car parts would reach 35% by 2026, two years ahead of the government's target of 30%, including the metal structure and painting. The Minister of Industry of Algeria, Ali Aoun, attended the event, stating, "The factory will start producing 50,000 cars per year, reaching 80,000 cars in 2026, creating 1,200 jobs." He considered the Fiat factory as the "starting point for a genuine automotive industry in Algeria."
In November, Stellantis Group signed an agreement with the Algerian Ministry of Industry regarding the importation of cars and the establishment of a factory within a year, with an investment of 200 million euros. The Algerian car market has faced challenges due to authorities halting car imports and closing assembly plants that, according to President Abdelmadjid Tebboune, "merely assembled wheels" in exchange for significant tax incentives.
