Stellantis explores new factory in Saudi Arabia

While Stellantis currently relies on two solid historical pillars—Europe and North America—the group is openly pursuing ambitions to diversify its geographical footprint. Faced with mature markets in the West, the company is actively working to consolidate a "third engine" of growth. This strategic pole, comprising South America, is increasingly driven by the dynamism of the Middle East and Africa region, where sales are steadily rising. To accelerate this momentum, the group is now studying the possibility of establishing a major new industrial facility in the heart of the Middle East.

A historic MoU signed in Washington

A decisive step has just been taken for Stellantis' industrial future in the Arabian Peninsula. During the U.S.-Saudi Investment Forum, held on November 19, 2025, at the prestigious John F. Kennedy Center in Washington DC, a quadripartite Memorandum of Understanding (MoU) was officially signed. This document links Stellantis with three major players in Saudi development: the Ministry of Investment of Saudi Arabia (MISA), the National Industrial Development Center (NIDC), and Petromin Corporation.

The objective of this signing is clear and ambitious: to evaluate the feasibility of creating a vehicle manufacturing plant within the Kingdom of Saudi Arabia. This joint initiative aims to localize the production of both commercial and passenger vehicles, specifically leveraging Stellantis' portfolio of iconic American brands. This choice is significant and responds to strong local demand for these specific vehicle types and powertrains.

For the Kingdom, this signature reinforces its commitment to Vision 2030, a national plan aimed at diversifying the economy and transforming the country into a regional hub for advanced manufacturing. The project aims to significantly increase the rate of local production, thereby contributing to the sustainability of the Saudi automotive industry. The roles are clearly distributed: MISA and NIDC will provide the regulatory framework and support for the industrial value chain, while Petromin, a leader in mobility solutions in the Kingdom, will bring its operational expertise and market knowledge. Stellantis will lead the industrial aspect, with a strong focus on electrification and regional self-sufficiency.

Middle East and Africa: a coherent industrial offensive

This announcement is not an isolated event but part of a comprehensive strategy to build an industrial network across the Middle East and Africa (MEA). Stellantis is methodically deploying its assets to capture growth where it exists. We are already witnessing this ramp-up in Algeria, where the Fiat brand is experiencing rapid development thanks to adapted local production.

The Moroccan model also serves as a showcase for this industrial success. The Kenitra plant has become a vital hub for the group, successfully assembling the Peugeot 208—a European best-seller—as well as urban mobility solutions like the Citroën Ami, Fiat Topolino, and Opel Rocks-e. More recently, the group strengthened its presence in Egypt with the opening of an assembly unit for the Citroën C4 X, built from kits shipped from the Madrid factory.

If realized, this future Saudi factory would constitute a new cornerstone of Stellantis' presence in this strategic zone. It would allow for more effective coverage of the Arabian Peninsula with products tailored to local specifications, thereby reducing logistics costs and delivery times.

On this subject, Samir Cherfan, Chief Operating Officer of Stellantis Middle East and Africa, highlighted the importance of this agreement: "This MoU is a strategic step towards building a future-forward automotive industry in the MENA region. Stellantis is committed to investing in local competencies and providing freedom of mobility to its customers, while supporting the region's industrial ambitions and strong growth potential."

Rebalancing global forces

In conclusion, the signing of this agreement in Saudi Arabia illustrates the group's strategic clarity regarding the shifts in the global automotive market. Europe and North America have become renewal markets, where structural growth remains low and volumes sometimes struggle to return to pre-pandemic levels.

The Middle East and Africa, alongside India and Latin America, are therefore establishing themselves as the legitimate drivers of this third engine, which is essential for Stellantis' overall performance. This factory project, by partnering with powerful local players like Petromin and benefiting from Saudi state support, would allow the automaker not only to secure market share but also to establish a lasting presence within a competitive and sustainable automotive ecosystem. For Stellantis, the future is decidedly being built beyond its historical borders.