Stellantis, the maker of Peugeot, Jeep and Fiat, has launched its first vehicle dismantling centre in the Middle East and Africa in Morocco, reinforcing its expansion in a country that has become a key automotive production hub in Africa.
Based in Casablanca, the facility can process up to 10,000 end-of-life vehicles each year, recovering usable components for resale across Morocco and neighbouring West African markets.
The project represents an investment of €1.6 million (about $1.8 million) by Stellantis and is expected to generate roughly 150 direct and indirect jobs when fully operational.
Industry trends are increasingly pushing automakers toward recycling and reuse, driven by higher raw material costs, supply chain disruptions, and stronger environmental regulations.
Casablanca now becomes Stellantis’s third global dismantling centre, following earlier facilities in Turin and São Paulo.
The 6,000-square-metre site will collect damaged and end-of-life vehicles from insurers, auctions, and specialised recovery channels, with reusable parts then sold through the company’s aftersales network and digital platforms.
Stellantis Middle East and Africa COO Samir Cherfan said the initiative forms part of the group’s broader circular economy strategy for the region.
“Circular Economy is a strategic priority for Stellantis in the Middle East and Africa,” he noted.
The centre operates under the company’s SUSTAINera programme, which focuses on repair, reuse, remanufacturing, and recycling of automotive components.
Stellantis MEA parts and services senior vice president Jean Christophe Bertrand projected that Morocco’s market for reused auto parts could reach 5 billion dirhams ($544 million) by 2030.
He also highlighted that Morocco has about 4.7 million vehicles on the road, with more than 17,000 reaching end-of-life status annually.
“We see significant opportunities in the Middle East and Africa, and Morocco could serve as a model for expansion into other markets,” he said.
Beyond spare parts recovery, the Casablanca hub will also handle batteries from electric vehicles, preparing Stellantis for future growth in EV recycling as adoption rises in emerging markets.
The launch comes as Morocco continues to attract major global automakers, including Stellantis and Renault Group, strengthening its role as a manufacturing and export base.
The country recently overtook South Africa as Africa’s largest vehicle producer, supplying markets in Europe, the Middle East, and across the continent.
Data from Morocco’s Office des Changes shows automotive exports rose 12.1% year-on-year to 42 billion dirhams ($4.2 billion) in early 2026.
Stellantis has also been scaling up its presence locally, announcing a €1.2 billion expansion of its Kenitra plant in 2025, with plans to raise local content to 75% by 2030.
New models such as the Fiat Giga Panda and Panda Fastback are expected to roll out from 2026, alongside increased production of compact electric vehicles including the Citroën Ami, Opel Rocks-e, and Fiat Topolino.
The Casablanca recycling hub also aligns with Stellantis’s global turnaround, after the company reported a net profit of €377 million in the first quarter of 2026, compared with a €387 million loss a year earlier, with revenues reaching €38.1 billion.
In the Middle East and Africa, the automaker lifted its market share to 11.5% despite a broader slowdown in regional auto demand.
With this new facility, Stellantis is expanding beyond manufacturing into recycling and aftermarket services, positioning itself for future growth as vehicle ownership increases and demand for affordable spare parts rises across Africa.