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Opel plans production in Algeria

Engineering

Opel is preparing a big strategic step into Africa and the Middle East, creating its first production base outside of Europe

Opel plans production in Algeria

Opel is preparing a major strategic step into Africa and the Middle East by establishing its first production base outside Europe in Algeria, as confirmed by CEO Florian Hüttl, with the aim of localizing production for fast-growing regional markets and reducing costs for entry-level models, according to Automobilwoche.

Although Opel has not yet confirmed the location of the plant, production is likely to be carried out at the Stellantis plant in Tafraoui near Oran, which has been operating since the end of 2023 and currently produces Fiat 500 and Doblo using CKD technology, with about 1,600 workers and a theoretical capacity of up to 90,000 vehicles per year. Starting in 2026, the plant should become a more fully-fledged production center with new workshops for painting, welding and pressing, which will allow Opel to gradually move from simple assembly to deeper localization.

Huttl's meeting in Algeria with Samir Cherfan, Chief Operating Officer of Stellantis Africa and Middle East, highlights how important this region has become for the group, where 538,000 vehicles were sold in 2024 and where Fiat dominates the Algerian market. For Opel, which already sells cars in Algeria and is heavily dependent on Turkey in the region, local production provides an opportunity to tap into the ecosystem of North African suppliers, compete with strong rivals such as Renault, Peugeot, Citroën and Dacia, and supply affordable cars with internal combustion engines to markets where electrification is still limited

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