The local arm of the motoring conglomerate, Stellantis, recently threw down the gauntlet at a high-voltage “media connect” briefing at Montecasino in Johannesburg.
As a motoring journalist since 2009, I’ve been to more of these “briefings” than I care to count. They are usually anything but brief, but rather long-winded yawnathons, with endless PowerPoint slides, sending us petrol heads to sleep.
But this one was different. Sure, there were slides and a fair amount of puffery, but my attention was tweaked when Stellantis SA CEO, Mike Whitfield, revealed not only the brand’s global ambitions but also its growing commitment to the South African market.
The big news was Stellantis’s R3 billion investment in the Eastern Cape, by way of an assembly plant in the Coega Special Economic Zone, outside Gqeberha.
Built for local and export sales, by 2027 the facility will produce Peugeot’s bakkie, the Landtrek. With bakkies such as the Toyota Hilux and Ford Ranger ruling the roost when it comes to bestsellers in SA, local production of the Landtrek appears to be a smart move. It’s part of the conglomerate’s aggressive strategy to turn the region into an industrial stronghold for the company’s Middle East and Africa plans.
The birth of Stellantis
Stellantis is an interesting company that I have followed closely since early 2021. While some of us were twiddling our thumbs in the Covid-19 lockdown, it was announced that US company Fiat Chrysler Automobiles and French motoring giant PSA had merged to form a mega alliance called Stellantis. (“Stellantis” comes from the Latin verb ‘stello’, meaning “to brighten with stars”.)
Overnight, the umbrella company became the owner of no less than 14 global brands, eight of which are active in SA: Jeep, Opel, Peugeot, Fiat, Citroën, Alfa Romeo, Maserati and soon we will see RAM (a North American brand offering bakkies, heavy-duty trucks and commercial vans).
‘Le Cost Killer’
Back in 2021, at the helm of this conglomerate was CEO Carlos Tavares, who was rumoured to be ruling the metal roost like a modern-day Napoleon. Dubbed “Le Cost Killer”, he began instituting harsh cost-cutting measures, which did not go down well with some of the old guard. His unapologetic focus on performance especially ruffled feathers among those from the North American side of the business.
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After months of tension, in what appeared to be a palace revolution in the Stellantis empire, Tavares resigned last December, two years ahead of schedule. Last month, he was replaced by Antonio Filosa, former Jeep CEO and chief operations officer for North America. He appears to have more support from the North American side of the business. Forgive me if this story is beginning to sound a bit like The Game of Thrones.
Anyway, let’s get back to the media event last week at Montecasino.
The other big “news” of the day was the announcement that, by September this year, we will see the first Leapmotor/Stellantis product on local roads – the Leapmotor C10 REEV. (REEV stands for “range-extender hybrid”, which is revolutionary electric vehicle tech that promises a drive range of over 1 000km on a single charge. This might just be the electric vehicle (EV) product that finally puts range anxiety to bed.)
At this point, you might be asking: Who or what is Leapmotor? While the Stellantis Leapmotor alliance is not exactly breaking news, to provide some context, in October 2023, the company invested €1.5 billion (R31 billion) to secure a 20% stake in Chinese EV maker Leapmotor, forming a joint venture called Leapmotor International. This gave Stellantis a 51% stake and exclusive rights to build and sell Leapmotor’s EVs outside China.
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Since 2021, when Stellantis was formed, it has lacked a strong EV presence and struggled in the Chinese market. Meanwhile, China pretty much dominates global EV manufacturing and innovation. By partnering with Leapmotor, Stellantis has been able to fast-track its entry into competitive EV markets, especially in Europe.
It was a smart move by the conglomerate, which was under pressure from stringent EU emissions targets. The alliance has also helped Stellantis gain access to Leapmotor’s advanced tech such as AI chips, software and battery systems. Conversely, Leapmotor has gained access to a global sales network and a projected 300 000 units in annual exports by 2030.
The Opel Grandland
After a full morning of Stellantis news and future key product launches, the other big reveal was the fully refreshed German-built Opel Grandland, a mid-sized SUV competing against the likes of the Toyota RAV4, Hyundai Tucson and Mazda CX-5; and Chinese rivals, including the Omoda C5, Chery Tiggo 8 Pro, Jaecoo J7, and Haval Jolion and H6.
The new Opel GrandLand GS Line is a swanky looker, replete with slick Euro-styling, and relies on a 1.6-litre turbocharged engine to produce 134kW of power and 300Nm of torque.
Priced at R789 900, while its Chinese rivals might undercut it on the money front, Opel is clearly gunning for the discerning buyer, who still values its German engineering heritage and driver feel over badge bling.
The road ahead
With Filosa at the helm, Leapmotor in the toolkit and the Coega plant in motion, Stellantis is intending to shift from catch-up to combat-ready in SA. Whether it’s reviving fading brands, launching new EVs or battling against Chinese “insurgents”, the message on the media day at Montecasino was clear: Stellantis is here to build, disrupt and hopefully win some new customers.
