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Doha – According to reports from the Italian news outlet La Gazzetta del Mezzogiorno, multinational automotive manufacturing corporation Stellantis is significantly increasing its production capacity in Morocco while simultaneously scaling back operations at its factory in Melfi, Italy.
This strategic shift has raised concerns among industry experts and local officials about the future of the automotive sector in the region.
The Melfi plant, which once employed up to 7,800 workers between 2014 and 2016, now has a workforce of only 5,425.
Similarly, the local supplier network has seen a reduction from over 5,000 employees to 3,500.
In contrast, Stellantis has invested approximately €300 million in its Kenitra factory in Morocco, with plans to double its production capacity from 200,000 to 400,000 vehicles annually.
Francesco Somma, president of Confindustria Basilicata, expressed his apprehension about the situation, stating, “The reorganization of the Stellantis production site in Melfi is progressing, and the supply chain is struggling to keep pace with the client due to low visibility on new orders and future production volumes.”
He emphasized that the coming weeks will be crucial to attempt to reverse the trend and influence an industrial strategy that currently foresees Melfi producing less than half of its maximum production capacity.
The stated concerns were shared by trade union representatives from Cgil Fiom, Cisl Fim, Uil Uilm, Ugl Uglm, Fismic Confsal, and Aqcfr, along with Melfi’s Mayor Giuseppe Maglione.
They highlighted the need to re-evaluate the choices made regarding electric vehicles and stressed the importance of Stellantis to the region’s economy, as it contributes significantly to the GDP of Basilicata.
Stellantis CEO Carlos Tavares recently praised the performance of the company’s Spanish factories while cautioning about the growing competition from Morocco.
He stated that the real competition for the Iberian Peninsula factories lies to the south, including Morocco, and potentially Algeria, Tunisia, Egypt, and Turkey in the near future.
Morocco has emerged as a leading automotive manufacturing hub, surpassing China to become the European Union’s top automotive trading partner in 2023.
The country has set ambitious goals to expand its production capacity to one million vehicles annually by 2025, up from its current capacity of 700,000.
With its strategic location, cheap labor, skilled workforce, and focus on higher-value production, Morocco is well-positioned to become a major player in the industry.
Read also: Automotive: Germany’s Benteler to Open Factory in Morocco’s Kenitra
