Stellantis revises Peugeot Landtrek bakkie plant plans in response to evolving market trends
Despite the bleak economic outlook, trade wars, and general gloom currently gripping South Africa, Stellantis is forging ahead with its plans to build a plant in the Kouga region.
Speaking at a Stellantis Media Connect event in Johannesburg, CEO of Stellantis South Africa and Managing Director for Stellantis Sub-Saharan Africa, Mike Whitfield, said the plans have changed slightly, but the earthworks have been completed.
Plans changed
'Our original plans have changed slightly as we adapt to the incredible disruption that we're not only seeing in the global market, but the local market as well.
'Previously, the plan was to produce 50 000 Peugeot Landtrek bakkies per year for export into Africa and the Middle East.
'But as we've all seen, the dynamics of the pickup sector have changed significantly, with many new one-ton players entering the local space.'
Whitfield pointed to the disruption in the market, especially from Chinese manufacturers.
'Only 34% of vehicles made in this country are sold here.
'We are obviously aware of the big challenge coming from vehicles that are made in India and China, and, indeed, the Chinese share of the market has grown significantly from 0.7% in 2018 to 12.9%.
"These are not things you can ignore, and you need to adapt and address that as you go forward."
From the original plan of producing only the Landtrek one-ton bakkies, they have now included two more production lines.
'One will be a new energy vehicle, and one I can't say anything about at the moment, but the Landtrek will remain the core product in the factory.'
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