Namibia’s auto dream fades as Stellantis moves south
Namibia’s dream of becoming a local automotive manufacturing hub has suffered a major setback, with Stellantis announcing plans to expand vehicle production in neighbouring South Africa.
The automaker revealed in 2023 plans to build a greenfield factory in the coastal city of Gqeberha - its first plant in South Africa - initially intended to produce the Peugeot Landtrek pickup truck, Reuters reported. The move appears to signal the end of the Peugeot Opel Assembly Namibia (POAN) plant in Walvis Bay.
POAN had symbolised Namibia’s aspirations to assemble vehicles domestically, but the dream was short-lived. The plant entered care and maintenance in 2023, and operations have since ceased.
“POAN is now a profound part of history never to be repeated in Namibia. Operations ceased more than three years ago, and parties entered into a mutual settlement agreement. The facility will be repurposed for industrialisation,” Namibia Industrialisation and Development Agency (NIDA) executive Wensel !Nanuseb told Market Watch.
Legal dispute
However, POAN director Ruben Amaambo offered a slightly different perspective, noting that advice had been sought from the Office of the Attorney General regarding the plant’s future due to a legal dispute with PSA Automobiles SA, prior to its rebranding as Stellantis.
The automaker claims it is owed N$79.9 million from its investment in Namibia, comprising N$17 million in initial share capital, N$14 million in research and development costs, and N$48.9 million in unpaid invoices.
An investment agreement between Groupe PSA (now Stellantis) and NIDA facilitated the joint venture to assemble Opel and Peugeot vehicles at Walvis Bay. The assembly plant had aimed to reach a production target of 5 000 units by 2020 for the Southern African Customs Union market.
Shifts in market dynamics prompted Stellantis to reassess its strategy.
“The market has changed dramatically. We believe that just having a pure pickup plant is not as viable,” Stellantis South Africa managing director Mike Whitfield told Reuters. “We are looking at adding additional products to the plant.”
Improved road infrastructure across sub-Saharan Africa and new automotive entrants from Thailand, India and China are changing consumer preferences. “People now have access to more affordable vehicles,” Whitfield added.
The planned South African plant will operate as a completely knocked down (CKD) facility, importing or sourcing parts locally. Stellantis sees this as a strategic move to expand its footprint in Africa, producing vehicles for both local and regional markets.
The automaker revealed in 2023 plans to build a greenfield factory in the coastal city of Gqeberha - its first plant in South Africa - initially intended to produce the Peugeot Landtrek pickup truck, Reuters reported. The move appears to signal the end of the Peugeot Opel Assembly Namibia (POAN) plant in Walvis Bay.
POAN had symbolised Namibia’s aspirations to assemble vehicles domestically, but the dream was short-lived. The plant entered care and maintenance in 2023, and operations have since ceased.
“POAN is now a profound part of history never to be repeated in Namibia. Operations ceased more than three years ago, and parties entered into a mutual settlement agreement. The facility will be repurposed for industrialisation,” Namibia Industrialisation and Development Agency (NIDA) executive Wensel !Nanuseb told Market Watch.
Legal dispute
However, POAN director Ruben Amaambo offered a slightly different perspective, noting that advice had been sought from the Office of the Attorney General regarding the plant’s future due to a legal dispute with PSA Automobiles SA, prior to its rebranding as Stellantis.
The automaker claims it is owed N$79.9 million from its investment in Namibia, comprising N$17 million in initial share capital, N$14 million in research and development costs, and N$48.9 million in unpaid invoices.
An investment agreement between Groupe PSA (now Stellantis) and NIDA facilitated the joint venture to assemble Opel and Peugeot vehicles at Walvis Bay. The assembly plant had aimed to reach a production target of 5 000 units by 2020 for the Southern African Customs Union market.
Shifts in market dynamics prompted Stellantis to reassess its strategy.
“The market has changed dramatically. We believe that just having a pure pickup plant is not as viable,” Stellantis South Africa managing director Mike Whitfield told Reuters. “We are looking at adding additional products to the plant.”
Improved road infrastructure across sub-Saharan Africa and new automotive entrants from Thailand, India and China are changing consumer preferences. “People now have access to more affordable vehicles,” Whitfield added.
The planned South African plant will operate as a completely knocked down (CKD) facility, importing or sourcing parts locally. Stellantis sees this as a strategic move to expand its footprint in Africa, producing vehicles for both local and regional markets.
Comments
Namibian Sun
No comments have been left on this article