Stellantis CEO Carlos Tavares has warned of Morocco’s “growing competitive edge” over Spain in the automotive manufacturing sector during the 2024 Paris Motor Show held from October 14 to 20, Barlamane.com reported.
To adapt to this shift, Tavares revealed that Stellantis is adjusting its engineering strategy by relocating a significant portion of its workforce to Morocco, acknowledging the country’s rising prominence in the industry.
Tavares stated that significant competition for Stellantis’ Spanish facilities comes from Morocco, with Spanish factories facing challenges due to rising production costs, including a 30% increase in raw material prices over the past year.
Stellantis is now developing expansion plans in Morocco to produce 400,000 vehicles annually by 2025.
Morocco has become a prime destination for car manufacturers, positioning itself as a leading exporter of vehicles to the EU, ahead of countries like China, Japan, and India.
The country is targeting an increase in production capacity to 1 million vehicles per year by 2025, supported by favorable regulatory frameworks and government incentives designed to attract foreign investment.
Global manufacturers such as Renault, Stellantis, and PSA have already established operations in Morocco, contributing to the country’s current output of 700,000 vehicles per year.