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Stellantis anchors circular drive in Casablanca

Stellantis has opened its first vehicle dismantling centre in the Middle East and Africa in Casablanca, placing Morocco at the centre of its push to build a regulated market for reused car parts and recycled automotive materials. The facility is designed to process up to 10,000 end-of-life vehicles a year and support customers facing higher repair costs amid pressure on raw-material supply chains.

The €1.6 million site, spread across 6,000 square metres, is the group’s third vehicle dismantling centre worldwide after Turin and São Paulo. It will source end-of-life vehicles from insurance companies, auctions and authorised channels, dismantle them, sell reusable original parts and collect components for recycling. The operation is expected to create about 150 direct and indirect jobs when it reaches full capacity.

Casablanca’s selection reflects Morocco’s growing importance in automotive manufacturing, export logistics and parts supply. The centre is intended to serve Morocco and West Africa, with dismantled parts sold mainly in the domestic market before wider regional deployment. Morocco has about 4.7 million vehicles in use, while more than 17,000 reach the end of their life each year, creating a supply base for a formal recycling and reuse system.

The market opportunity is sizeable. Reused automotive parts in Morocco could be worth about 5 billion dirhams by 2030, as vehicle owners, workshops and fleet operators look for cheaper alternatives to new components without relying on informal supply chains. The new centre gives Stellantis a controlled route to recover parts, certify quality and feed them into its aftersales network and digital platforms.

Samir Cherfan, Stellantis chief operating officer for the Middle East and Africa and global head of micromobility, said circular economy work had become a strategic priority for the region because it combined “industrial performance, affordability for customers and the responsible use of resources”. His remarks underline the commercial logic behind the project: reused parts can lower ownership costs while helping the company extract more value from vehicles beyond their first life.

The initiative falls under SUSTAINera, Stellantis’s circular-economy business unit, which focuses on remanufacturing, repair, reuse and recycling. Jean Christophe Bertrand, senior vice-president for Stellantis Middle East and Africa Parts and Services, said the company was industrialising a strategy based on those four principles, with the aim of making reused and remanufactured parts scalable and accessible without compromising quality.

For regulators and manufacturers, the shift is being driven by the rising cost of raw materials, uneven availability of critical inputs and the environmental burden of extracting metals, plastics and rare materials used in modern vehicles. Dismantling centres can recover usable parts, separate recyclable materials and reduce leakage into unregulated scrap networks, although the model depends on traceable sourcing, effective quality controls and customer confidence.

Morocco offers Stellantis a broader industrial base from which to test that model. The group is also expanding its Kenitra plant, with plans to more than double annual capacity to 535,000 vehicles. The facility already produces small electric models including the Citroën Ami, Opel Rocks-e and Fiat Topolino, and is expected to raise output of those vehicles from 20,000 to 70,000 units. The expansion also includes hybrid engines and three-wheeled vehicles.

Morocco’s automotive exports reached a record 157 billion dirhams in 2024, supported by carmakers, parts suppliers and investment linked to the electric-mobility transition. The country is targeting deeper local sourcing, with Stellantis’s Kenitra expansion expected to help push the sourcing rate towards 75 per cent by 2030. That industrial ecosystem makes Casablanca a logical base for parts recovery, dismantling expertise and aftermarket distribution.

The project also carries risks. Formal dismantling systems require steady vehicle supply, enforceable end-of-life rules and pricing that can compete with informal parts dealers. Consumers must trust that reused components meet safety and performance expectations, especially for critical systems and traction batteries. Stellantis has said selected used product families, including traction batteries, will be handled through rigorous dismantling operations, making compliance central to the site’s credibility.
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