Yahoo Finance Stellantis (STLA) to Launch Fiat in Algeria & Invest EUR 200M
Stellantis STLA announces its plan to introduce six Fiat models in Algeria to offer the regional customers a wide variety of choices. The auto giant is set to launch Fiat 500X, Fiat 500 Hybrid, Fiat Doblo, Fiat Tipo, Fiat Ducato and Fiat Scudo.
Stellantis and its suppliers have planned to invest more than €200 million in the first phase of the manufacturing process, during which Fiat will manufacture four models, starting with Fiat 500, whose production will begin in December 2023.
The investment is an extension of the automotive sales agreement signed in 2022 with the Algerian Investment Promotion Agency. The agreement is focused on the development of industrial, aftersales and spare parts activities of the automaker, as well as the development of the auto sector in Algeria.
Algeria is set to become one of the chief contributors to Stellantis MEA (Middle East & Africa) Dare Forward 2030 strategy. By 2030, out of the total regional car consumption in Algeria, 70% of the production is expected to be domestic.
The plant construction in Tafraoui, Oran, is expected to be completed by August 2023 and will be ready for the production of Fiat 500 model by the end of 2023. By 2026, around 2,000 local positions will be created, the localization rate will reach more than 30% and 90,000 vehicles per annum will start to roll off the production line.
By the end of 2023, Stellantis will cover 28 provinces with its sales and aftersales network to ensure high-quality service for regional customers.
Fiat 500 Hybrid will be the first model to enter production stage in Algeria, followed by Fiat Doblo. A new model, which is still in designing stage, will also be produced in the country in a few years. Fiat has already started taking orders for all six models to cater to the diverse needs of customers in Algeria.
Zacks Rank & Key Picks
STLA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A few better-ranked players in the auto space are Wabash National WNC and Modine Manufacturing MOD, both currently sporting a Zacks Rank #1 (Strong Buy).
Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimate for WNC’s 2023 sales and earnings implies year-over-year growth of 13.06% and 24%, respectively.
Modine operates primarily in a single industry consisting of the manufacture and sale of heat transfer equipment. The Zacks Consensus Estimate for MOD’s 2023 sales and earnings implies year-over-year growth of 11.43% and 43.09%, respectively.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Wabash National Corporation (WNC) : Free Stock Analysis Report
Modine Manufacturing Company (MOD) : Free Stock Analysis Report
Stellantis N.V. (STLA) : Free Stock Analysis Report
