Stellantis Invests ZAR 3 Billion in South Africa, Establishing State-of-the-Art Automotive Plant in Coega

StellantisMEA COO Cherfan and SA Minister of Trade, Industry & Competition Patelshake hands on a new manufacturing plant in South Africa

Rapidprogress has been made since the MOU signing in March 2023 with the IndustrialDevelopment Corporation (IDC) and the Department of Trade, Industry andCompetition (the dtic)

Thisbold initiative reinforces Stellantis MEA Region's Dare Forward 2030 ambitionto sell one million vehicles by 2030 with 70% regional production autonomy

Cape Town September 13, 2023 - Stellantis has confirmedits intention to develop a greenfield manufacturing facility in Coega in SouthAfrica with the Industrial Development Corporation (IDC) and the Department ofTrade, Industry and Competition (the dtic). Minister Ebrahim Patel,senior officials from the IDC and Mr. Samir Cherfan, Stellantis Middle East andAfrica Chief Operating Officer met at the Parliament Buildings in Cape Town toagree on investment in the South African motor industry.

"Itis a wonderful day for all South Africans when a global company of Stellantis'proportions decides to expand its manufacturing footprint in South Africa, toassemble completely knocked down units," said Mr. Ebrahim Patel, Minister ofTrade, Industry and Competition. "South Africa currently has the capacity toproduce close to 700 000 vehicles annually. This will add considerableadditional capacity, just as we prepare to implement the African ContinentalFree Trade Area. The country remains a great investment destination and thiscommitment from Stellantis to invest in our local motor industry highlights thesuccess of our manufacturing sector policy, its capability and potential. Welook forward to welcoming Stellantis to South Africa and sharing in thedetailed plan for employment and investment".

"We are delighted with thespeed at which we are progressing on this project, thanks to the commitment ofMinister Patel and the great collaboration with IDC, CDC and dtic teams,"commented Samir Cherfan-Chief Operating Officer Stellantis Middle East andAfrica. "This project reflects our focus and trust in South Africa as one ofthe most important markets in Africa & Middle East. It is also theexecution of our Dare Forward 2030 Strategy to reach over 22% Market Share inthe region by 2030 with 70% regional localization of our sales leading to over1 million units produced. We believe in South Africa and we intend to developindustrially and commercially bringing value to our customers".

Themanufacturing plant will be built in the South African Special Economic Zone(SEZ) in Coega situated near Gqeberha in the Eastern Cape province of SouthAfrica. The greenfield manufacturing project is planned to complete by the endof 2025. The first launch planned early 2026 is a 1 T pick-up truck withvolumes expected to reach up to 50,000 completely knocked down (CKD's) unitsannually including export, in line with the industry masterplan, known as theAutomotive Production Development Program (APDP). The plant will be predisposedin terms of space and painting to go up to 90K units / year.

Directemployment to support the first capacity step is expected at 1000 jobs.Stellantis will be massively investing in over 500 000 hours in training andskills to develop and support the local teams to the level of global standards.We are targeting a localization rate over 30%.

"TheCoega Development Corporation (CDC) is enthralled for Stellantis to have chosenthe proposed site in Coega for their Southern African manufacturing operations.Joining other major manufacturers in the area makes the Coega region theprimary automotive hub in the country. The investment in the plant, employment,training and skills transfer will certainly benefit the region tremendously."This is a much needed and welcomed economic boost for the Eastern CapeProvince with an anticipated economy wide impact on the province's GDP of R 664million. Household income is anticipated to increase to R558.4 million withinthe Nelson Mandela Bay Municipality (NMBM) and R577.4 million for the entireProvince. Most importantly, an anticipated 1800 jobs will be created in theMetro and around 2 097 for the EC Province," said Khwezi Tiya, CEO the CDC.

Stellantiscontinues to work closely with the IDC in developing a viable joint venture(JV) partnership that will be evaluated by appropriate credit committees. "Stellantis' success with similarmanufacturing plants around the world is well-known and our planned JV withStellantis to build another greenfield plant in South Africa is progressingwell. The investment is in line with IDC's intent to drive investment thatsupports the development of the regional automobile value chain," said Mr. TP Nchocho, CEO of the IDC.