
Stellantis' local assembly plans now involve three products
Peugeot Landtrek will be joined by two additional products produced locally at the currently under construction plant in the Eastern Cape. Image: Peugeot
Stellantis has revised its plans for South Africa by announcing that its under-construction factory in the Coega Industrial Zone in Nelson Mandela Bay will no longer solely build the Peugeot Landtrek bakkie.
Making the most
Part of a R3-billion investment for the production of 50 000 units annually, the deal, inked with the Department of Trade and Industry two years ago, had only been expected to involve complete knockdown (CKD) kit versions of the Landtrek for the local and export market by 2026.
ALSO READ: Subtly updated Peugeot Landtrek debuts with new diesel heart
Despite rumours at the time suggesting that Fiat might be another option when the third-generation Strada reverts to being a global model that same year, Stellantis South Africa CEO Mike Whitfield affirmed that the facility would instead be geared for two additional models alongside the Landtrek.
Addressing the media at Stellantis' annual Media Connect event at Montecasino in Johannesburg on Wednesday (9 July), Whitfield said changes in the automotive landscape had made sole production of the Landtrek no longer viable if it wanted to fully utilise a factory claimed to produce as many as 90 000 units per year.
A total of three
Asked about the planned products, Whitfield stated that one would fall under the new energy vehicle category, before declining to comment on the third model.
Shown at the event, the C10 by Chinese start-up Leapmotor, which entered into a formal partnership with Stellantis last year, has hinted at a possible third model, although this is purely speculative and unconfirmed for the moment.
Whitfield, however, stated that the Landtrek, currently imported from China, will remain the core model once the factory commences assembly, now that the groundwork for the foundation has finished.
More later
Part of the conglomerate's Dare Forward 2030 campaign, initial reports that the facility would become operational at the end of the year have now seemingly been pushed back, as assembly was expected to start next year.
While no details are available at the moment, expectations are that a clearer picture could emerge either before year-end or in early 2026.
NOW READ: Stellantis approves R3bn local bakkie production deal from 2026
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


eNCA
2 hours ago
- eNCA
Government backs Transnet again
JOHANNESBURG - Transnet has secured almost R95-billion in government guarantees as part of efforts to revive its failing operations. Is it a worthwhile investment or a waste of money? READ: Government approves additional guarantees for Transnet Mark Evans a partner at Oliver Wyman, a management consulting firm discussed the value of this investment with eNCA.


Daily Maverick
7 hours ago
- Daily Maverick
Emfuleni crisis highlights local government debt as Treasury cracks the whip
The closure of the Emfuleni Local Municipality offices due to unpaid rent highlights the local government debt crisis, something Treasury hopes to fix by withholding grants from defaulting municipalities. Residents of Emfuleni were unable to make payments or lodge enquiries at the municipality's Vanderbijlpark offices this week after they were locked due to the failure to pay the monthly R6.4-million rent. According to the DA's Emfuleni caucus leader, Duncan Mthembu, this is a 'powerful symbol' of a nationwide crisis of municipal dysfunction and ballooning debt. Freedom Front Plus Councillor Hein van der Lith said the property owner had closed the building, which has more than 100 offices, twice previously this year and three times in 2024. He said the closure follows a recent recommendation from the Gauteng Legislature's Committee on Cooperative Governance and Traditional Affairs (Cogta) to place the troubled municipality under administration. Emfuleni was recently identified by Finance Minister Enoch Godongwana as one of 39 municipalities that have persistently failed to pay water boards and other parties such as pension funds, medical aids, SARS, the Auditor-General, and continues to adopt unfunded budgets. The minister said he would suspend all grants to the 39 municipalities for the rest of the financial year due to their ongoing failures. The DA's Mthembu said the closure of the Emfuleni offices meant 'residents have been left confused and stuck on how to proceed in getting assistance with payments and enquiries'. Emfuleni is located in Gauteng and comprises areas such as Vanderbijlpark. Mthembu said this was 'nothing more but an abject failure in governance, and something as simple as communication. The municipality could not even inform residents of their offices' closure.' Account attached Emfuleni's problems have been compounded by Rand Water's decision to attach the municipality's bank account due to its R1.7-billion unpaid debt. Emfuleni Municipality spokesperson Makhosonke Sangweni denied that the municipality had failed to honour its payment agreement with Rand Water, describing it as 'arbitrary'. Emfuleni Finance MMC Hassan Mako said, 'The municipality is unable to access its bank account because Rand Water has attached the account, and this situation has persisted for two months.' He said the municipality had considered taking the matter to court, but the mayor refused. Mako said the municipality had formed a special purpose vehicle (SPV) with Rand Water that would manage the water and sanitation services. 'However, Rand Water seems to be more focused on delaying the launch process by continuously attaching the municipality's accounts,' said Mako. 'The SPV project requires R1.3-billion, while Rand Water is owed R1.7-billion. Nevertheless, the municipality has committed to servicing the debt in tranches so that other service providers can be paid,' said Mako. Describing the impact of having its bank account attached, Mako said, 'There is no diesel to pick up refuse. Contractors that were assisting us with cleaning illegal dumps are not paid and have left the sites. When offices are closed, it means workers are paid salaries for doing nothing, and municipal infrastructure projects are suffering.' Emfuleni also owes Eskom R8.5-billion as at the end of June 2025. 'We believe the municipality is being held ransom by Rand Water, which negatively impacts service delivery. As a collective, we urge the mayor to lead by allowing this matter to be resolved in court in the best interest of service delivery,' Mako added. Emfuleni's municipal debt came under the spotlight in a letter from Godongwana to Cogta Minister Velenkosini Hlabisa on the ongoing crisis in municipalities. Gondongwana cracks whip on debt-ridden municipalities At the end of June, Godongwana informed Hlabisa that he would invoke Section 216(2) of the Constitution against the 39 most dysfunctional municipalities for 'persistent non-compliance'. This section allows the National Treasury to stop the transfer of funds to an organ of state if it commits a 'serious or persistent material breach' of measures designed to ensure transparency and expenditure control. According to Godongwana, Treasury has outlined a strict mechanism to force compliance: if any of the 18 defaulting municipalities fail to provide proof of full payment to their respective water boards within seven days of the 30 June letter, their Local Government Equitable Share (LGES) will be stopped. This withheld equitable share will only be released in portions, with stringent conditions. The first portion must be strictly used to pay current water board accounts, with proof of payment required, before a second amount is released for arrears owed under a valid repayment arrangement. According to the letter from Godongwana, if these conditions were not met, or if evidence of payments to institutions such as SARS, pension funds and other statutory third parties is not submitted, Treasury would approach Parliament to endorse the stopping of all LGES transfers for the rest of the 2025/26 municipal financial year. Municipal financial years run from 1 July to 30 June. Treasury also plans to withhold conditional infrastructure transfers. 'It is advisable that, parallel to the LGES withholding process, Rand Water, Vaal Central, Lepelle Northern, and Magalies Water enforce their credit control policies to also attach the bank accounts of the defaulting municipalities to enforce a change in behaviour of these municipalities. The same applies to all the water boards, in order to avoid a similar situation and prevent escalating debt across water boards,' said Godongwana. Earlier this year, Hlabisa told Daily Maverick the national government was sending a message to municipalities that 'it is time to pay'. During his 2025 departmental budget vote debate speech, the Cogta minister said: 'We have concurred with Treasury to compel the payments for water boards and Eskom, and pay pension and medical aid contributions to third parties. Notably, the same principle will have to apply to all government departments who owe municipalities, they must be compelled to pay what is due to municipalities.' Municipalities across the country owe Eskom almost R110-billion. Writing in Business Live, Municipal IQ managing director Kevin Allan said the local government debt crisis was caused by poor governance, a lack of oversight, and weak administrative capacity. 'The suspension of grants, therefore, represents the Treasury's move from carrot to stick. But this approach is not without risk. Service interruptions, project delays and cash flow constraints may follow in affected municipalities. Residents could bear the brunt of deteriorating services, and protest action may escalate,' said Allan. He described Treasury's decision as 'both bold and necessary'. 'The stakes are enormous. Without intervention, the escalating debt spiral could not only collapse local government, but destabilise national service delivery and weaken the country's fiscal standing,' Allan continued. 'Above all, municipalities must get back to basics. They must adopt funded budgets, bill accurately, collect revenue diligently and prioritise creditor payments. Professionalising financial management, insulating administration from politics and enforcing accountability are not optional – they are essential. DM

IOL News
10 hours ago
- IOL News
Deputy President Paul Mashatile denies misuse of public funds amid luxury property claims
Deputy President Paul Mashatile denies claims of misusing public funds, insisting luxury properties linked to him are privately owned by family. Deputy President Paul Mashatile has denied allegations that he uses his government position to amass wealth and live in luxury. Speaking at the official opening of the Inkosi Simingaye Shopping Centre on the sideline of KwaXimba near Cato Ridge, west of Durban on Thursday, Mashatile addressed reports about a property in Constantia that had been linked to him in Parliament. IOL previously reported that Mashatile is facing scrutiny for declaring two luxury properties worth a combined R65 million, despite an annual salary of just over R3 million. Among these is a Constantia estate in Cape Town valued at R28.9 million, which he previously claimed was owned by his son-in-law's company. The other is a Waterfall property in Midrand, reportedly valued at R37 million. Within a year, Mashatile has declared at least two high-value properties, including the Constantia estate he once denied owning. The declarations have intensified public debate around the wealth of public servants and the transparency of their financial disclosures. These declarations came as members of Parliament made their latest financial disclosures public through the June 2025 Register of Members' Interests. 'People must read. That's the first thing you must learn in life. There's nothing in Parliament that I said I own a house. I said I live there. That house is owned by my son-in-law. It's a very simple thing to read. So what's the problem?'