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Thursday, 23 February 2023

Stellantis, Nissan and Mansour could invest USD 145 mn in local assembly

Stellantis, Nissan and Al Mansour Automotive could invest a total of USD 145 mn in the nation’s auto industry over the next three years under individual framework agreements signed with the government earlier this month, Prime Minister Moustafa Madbouly said yesterday. If all three agreements are executed, the companies would produce a total of 60k-70k traditional and electric vehicles every year, some of which would be earmarked for export, the PM said. Madbouly didn’t specify how many traditional vehicles will be assembled versus EVs or break down the split by assembler.

Background: Madbouly’s statements come days after the government signed framework agreements with the three automakers on localizing their assembly operations. The agreements aim to “achieve binding cooperation between the government and the companies towards the goals of the [national automotive strategy],” working with all three of the new automotive bodies as well as state investment body GAFI, cabinet said last week.

REMEMBER- The government is still working on its long-awaited automotive strategy AKA the Automotive Industry Development Program (AIDP). The strategy is expected to offer incentives to carmakers to increase local assembly and component manufacturing, increase the sector’s competitiveness, and raise exports.

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