Stellantis’ Fiat’s industrial presence in Algeria to breathe life into automotive industry
By: Hana Saada
ALGIERS– Fiat Algeria is one of the first three dealers to have obtained approval from the Ministry of Industry for the import and marketing of new vehicles. Two other dealers have also received approval, namely; Emin Auto for Chinese brand JAC vehicles and Halil Auto for the Opel brand belonging to the Stellantis group. A first batch of 120 Fiat brand cars arrived on March 12 at the port of Mostaganem.
In fact, all eyes are directed, today, to the big announcement of FIAT Algeria, which marks the official return of the import of new vehicles after almost 4 years of absence. Indeed, after all the scandals that affected the automobile sector, the new authorities of the country had decided to restore order in this sensitive area which was used to “pump” the country’s foreign exchange reserves. The case then held the whole country in suspense, especially since it caused an imbalance in the market, causing a surge in second-hand vehicles. So that’s what makes today’s event grandiose.
Moreover, the grand event, held at the Sheraton hotel in Algiers, coincides with a date that bears great symbolism, that of the Victory Day in Algeria.
No details have been provided so far on the models that will come off the assembly lines, but one can imagine that the Fiat Panda and Tipo will be there, as well as the 500, especially since the Algerian President of the Republic, Mr. Abdelmadjid Tebboune, had indicated that electric models would also be produced in the country.
According to EcoAlgerie news website, six (6) models will be marketed, including three tourists and three utilities. According to the same source, the passenger car models are “Fiat 500” and “FIAT 500 L”, as well as the five-door Fiat Tipo. As for utility cars, all Fiat “Scudo” commercial models will be on display, as well as the Fiat “Doblo” commercial model, and Fiat “Ducato”.
That’s how it all started
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Carlos Tavares, Chairman and CEO of Stellantis, on his part, voiced, on multiple occasions, that Algeria, a strategic partner for his country, Italy, is one of the growth priorities for Stellantis.
A framework agreement was signed, October 13th, 2022, in Algiers, between Mr. Samir Cherfan, Chief Operating Officer of Middle East & Africa region of Stellantis, and Mr. Boussoussa Zineddine, Director of Cooperation of the Algerian Ministry of Industry.
This framework agreement covers a project for the development in Algeria of industrial, after-sales and spare parts activities for Fiat, one of the emblematic brands of Stellantis, as well as the development of the automotive sector in Algeria.
This ceremony was chaired by Mr. Ahmed Zaghdar Algerian the-then Minister of Industry and Mr. Carlos Tavares Chief Executive Officer of Stellantis in the presence of the Algerian and Italian Ambassadors.
Following this signature, Mr. Carlos Tavares met the Algerian Prime Minister Mr. Aïmene Benabderrahmane.
“The signing of this framework agreement is in line with the historic place occupied by Stellantis and its brands in the Algerian automotive market,” said Stellantis CEO Carlos Tavares. “The quality of the ongoing discussions makes us confident about the development prospects of the Fiat brand, which will be keen to meet the expectations of Algerian customers,” said Carlos Tavares after the audience granted to him by the Algerian Prime Minister Aïmene Benabderrahmane.
As it was announced at the end of 2022, the group will begin production of FIAT’s locally-produced vehicles as of March 2023. This project is part of the strengthening of the privileged strategic partnership linking Algeria and Italy and comes in concretization of the recommendations of the 4th Algerian-Italian Intergovernmental Summit held in Algiers on July 18.
The “FIAT” car plant will be located in the commune of Tafraoui in the western province of Oran on a land base of 40 ha and another adjacent on an area of 80 ha devoted to local suppliers and subcontracting companies, to develop a real ecosystem through a local integration plan, as part of a plan to improve the know-how of existing players in Algeria, and to find new players to achieve the integration means required in the specifications.
In its 2030 strategic plan, STELLANTIS announced its ambition to reach a production capacity of one (01) million vehicles/year by 2030 in the Africa and Middle East region, and therefore achieve an industrial autonomy of 70 %.
As for Algeria, an annual production capacity of 60,000 cars for the Fiat plant located in Tafraoui near the western province of Oran, is intended before a ramp up which should lead to almost 90,000 units per year. This is what the President of the Algerian Republic Abdelmadjid Tebboune confirmed from Algiers, during a press briefing held with the President of the Italian Council of Ministers, Giorgia Meloni.
In accordance with the regional strategic plan, the “FIAT” brand project in Algeria is based on three integrated pillars, namely; the development of a network of efficient suppliers, the contribution to the creation of higher and professional training sessions for the industry automobile, in addition to the production, marketing and export of vehicles according to international standards.
Wherefore, a distribution network has already been set up. In addition, Samir Cherfan, head of Stellantis’ MENA region, was recently delighted that the Algerian project was progressing rapidly on all fronts, in particular on the integration of the network of equipment manufacturers supplying parts and components, but also on the recruitment and training.
The distribution network for sales and after-sales is also being built up at a good pace. Algeria has also decided to speed up the issue of charging infrastructure in the country.
On March 6, the Ministry of Industry granted the approval for the exercise of the activity of dealership of new vehicles to Fiat Algeria.
Noting that the first Italian Fiat brand vehicles assembled in Algeria will be marketed as of December 1, 2023. The FIAT plant, located in Tafraoui in the province of Oran, should be received by August 31st of the current year. It will begin testing from September to October to enter production on December 1, 2023.
Fiat Algeria would reassure Algerians who are still complaining about the lack of supply and the rise in vehicle prices which particularly affect second-hand vehicles which should also experience a lull soon thanks to the decisions taken by the Government which authorized again the importation, this March, of cars under three years, pending the entry into production and the marketing of the first vehicles manufactured locally.
The State hopes to give new impetus to the automotive industry, after almost three years of blockage. Automobile manufacturing is one of the “urgent priorities”, as Industry Ministry eyes to conclude new partnerships with a view to strengthening the production of vehicles in Algeria. All the conditions and procedures for exercising the activity of new vehicle dealerships and car manufacturing are set by the two Executive Decrees, published on November 17, 2022. Many dealers and foreign car manufacturing groups have already reiterated their full readiness to invest in the sector in Algeria, according to the new rules set by the Algerian legislator.
