ORAN - The factory of the Italian brand "Fiat", inaugurated on December 11 in the industrial zone of Tafraoui (south of the wilaya of Oran), is considered an important step in the revival of the activity of the automobile manufacturing in Algeria.

Algeria's automotive landscape is undergoing a transformative shift, propelled by a landmark partnership with Stellantis, the global automotive giant that owns the iconic Fiat brand. This strategic collaboration, formalized in October 2022, extends beyond mere vehicle assembly, aiming to revitalize the nation's industrial ecosystem and foster sustainable economic development.

The project's swift execution is a testament to the commitment of both parties. Within a year of signing the framework agreement, the Tafraoui factory hummed with activity, a testament to the urgency and efficiency prioritized by the Algerian Ministry of Industry and Stellantis. This swiftness signals a shared vision for a thriving automotive sector.

Beyond Assembly Lines: Building an Automotive Ecosystem for Shared Success

The Fiat factory in Oran isn't just a production facility; it's a launchpad for broader economic development. The agreement prioritizes local integration, fostering a robust ecosystem encompassing manufacturing, after-sales services, spare parts production, and supporting industries. This focus on shared success creates a win-win situation for Fiat, Algeria, and the wider African continent.

The agreement emphasizes the importance of local integration, aiming to achieve a 40-50% integration rate within the foreseeable future. This necessitates the expansion and diversification of the local industrial fabric, creating opportunities for numerous startups and subcontractors to flourish in the Tafraoui region. To facilitate this, a dedicated 40-hectare land portfolio has been allocated for the establishment of these essential partner businesses, specializing in spare parts and other crucial components.

Jobs, Skills, and Prosperity: Empowering Algerians Through Fiat's Expansion

Local integration constitutes one of the pillars of the revitalization of automobile manufacturing in Algeria. With this in mind, those responsible for the Industry sector have implemented a battery of incentive measures aimed at supporting startups.

The incentive measures also aim to accelerate the development of sites intended to accommodate economic entities to be initiated by young subcontractors, located near the site of this factory, who will be called upon to be essential partners from the Fiat factory.

A land portfolio, which extends over no less than 40 hectares, has been released for the benefit of young entrepreneurs, particularly those who must specialize in the manufacture of spare parts.

These young entrepreneurs are called upon to set up their businesses in the activity zone which has been exclusively dedicated to them.

Quality, Technology Transfer, and Shared Success: Fiat's Commitment to Algeria's Future

This project will create economic dynamics in the commune of Tafraoui, by encouraging other economic operators to invest in this industrial zone, which extends over an area of ​​576 hectares, which would create business opportunities. investment, subcontracting and employment.

The project also allowed the creation of 500 employment positions in 2023, a number which will increase to 1,200 positions the following year and to 2,000 additional positions in 2026, in addition to 1,600 indirect positions until 2026 .

Moreover, Fiat's commitment to quality and exceeding development requirements ensures a mutually beneficial partnership. Their dedication to achieving high integration rates fosters a robust ecosystem where knowledge transfer and technological advancement become intertwined with economic growth. This collaborative approach paves the way for a self-sufficient and sustainable automotive industry in Algeria.

The "Stellantis" announced that the vehicle production capacities of the Tafraoui factory are estimated, in a first phase, at 60,000 units annually, before increasing to 90,000 cars under the second phase.

Stellantis

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Beyond Fiat: A Gateway to a Thriving Automotive Africa

Fiat's Algerian journey is not merely a singular instance; it is a signal of broader industrial ambitions. The arrival of other automotive giants like Opel and JAC reinforces this commitment to revitalizing Algeria's manufacturing sector. This influx of international expertise fosters a dynamic environment of knowledge exchange and co-creation, accelerating the development of a world-class automotive industry in Algeria, potentially positioning the nation as a leader in Africa's automotive future.

In addition, 38 dealers have also obtained definitive accreditation to carry out the activity of dealers for the marketing of various types of vehicles (tourist, utility, industrial, machines, motorcycles, buses and trucks), including 12 dealers specialized in the marketing of passenger vehicles as part of efforts to revive this industrial activity and meet the needs of the national market.

The marketing of imported vehicles is considered as a first step, before the realization of the strategic objective set by the State, aimed at establishing a truly sustainable industry, creating jobs, contributing to economic recovery, wealth creation and increase the country's GDP.

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