Stellantis opens first MEA vehicle dismantling hub in Morocco

Stellantis, the owner of Peugeot, Jeep and Fiat, has opened its first vehicle dismantling centre in the Middle East and Africa region, deepening its investment in Morocco as the country strengthens its position as Africa’s leading automotive manufacturing hub.

• Stellantis has opened its first vehicle dismantling centre in the Middle East and Africa in Casablanca, Morocco, marking a push into automotive recycling in the region.
• The €1.6 million facility can process up to 10,000 end-of-life vehicles annually and recover parts for resale across Morocco and West Africa.
• The project supports Stellantis’s circular economy strategy and is expected to create about 150 jobs while expanding into EV battery recycling.
• The move strengthens Morocco’s position as Africa’s top automotive hub, alongside rising vehicle production and export growth.

The facility, located in Casablanca, is designed to dismantle up to 10,000 end-of-life vehicles annually and recover reusable parts for resale across Morocco and West Africa.

Stellantis said it invested €1.6 million ($1.8 million) in the project, which is expected to create around 150 direct and indirect jobs at full capacity.

The move reflects a broader shift in the global auto industry as manufacturers increasingly focus on recycling and reused components amid rising raw material costs, supply chain pressures and stricter environmental targets.

Casablanca becomes Stellantis’s third vehicle dismantling centre worldwide after similar facilities in Turin, Italy, and São Paulo, Brazil.

The 6,000-square-metre site will source damaged and end-of-life vehicles from insurance companies, auctions and specialised recovery channels. Functional parts recovered from the vehicles will then be sold through Stellantis’s aftersales network and digital platforms.

Samir Cherfan, Stellantis chief operating officer for the Middle East and Africa, described the project as part of the company’s long-term regional strategy focused on the circular economy.

“Circular Economy is a strategic priority for Stellantis in the Middle East and Africa,” he said.

The facility operates under SUSTAINera, Stellantis’s recycling and remanufacturing business unit, which focuses on repair, reuse, recycling and remanufacturing activities.

Jean Christophe Bertrand, senior vice president for Stellantis Middle East and Africa parts and services, said Morocco’s market for reused vehicle parts could reach 5 billion dirhams ($544 million) by 2030.

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Morocco currently has around 4.7 million vehicles in circulation, while more than 17,000 vehicles reach end-of-life status each year, he added.

“We have plenty of profit pools in the Middle East and Africa, and what we are doing in Morocco could be an opportunity to grow our business in many places,” Bertrand said.

Beyond traditional spare parts recovery, the Casablanca facility will also process traction batteries from dismantled electric vehicles, positioning Stellantis for future growth in EV recycling as adoption gradually increases across emerging markets.

The launch comes as Morocco continues to attract major automotive investments from global manufacturers including Renault and Stellantis.

Earlier this year, Morocco overtook South Africa as Africa’s largest vehicle producer, reinforcing its role as a manufacturing and export base serving Europe, the Middle East and Africa.

According to Morocco’s Office des Changes, the country’s automotive exports rose 12.1% year-on-year to 42 billion dirhams ($4.2 billion) in the first quarter of 2026.

Stellantis has expanded aggressively in Morocco in recent years. In 2025, the company announced a €1.2 billion investment to expand its Kenitra plant and increase local integration rates to 75% by 2030.

The facility is expected to produce new Fiat models, including the Giga Panda and Panda Fastback, from 2026. Production of electric microcars such as the Citroën Ami, Opel Rocks-e and Fiat Topolino has also increased sharply at the site.

The Casablanca dismantling centre comes as Stellantis continues its financial recovery globally. The company posted a net profit of €377 million in the first quarter of 2026, compared with a loss of €387 million during the same period a year earlier, while revenues rose to €38.1 billion.

In the Middle East and Africa region, Stellantis increased its market share to 11.5% in the first quarter despite a broader slowdown in the regional automotive market.

By launching Morocco’s first automaker-led end-of-life vehicle management system, Stellantis is extending its presence beyond manufacturing into recycling and aftermarket services, sectors expected to grow rapidly as vehicle ownership rises across Africa and consumers increasingly seek lower-cost spare parts.