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Stellantis Launches First Vehicle Dismantling Center in Morocco: A Step Towards a Circular Economy

PUBLISHED May 7, 2026
Stellantis Launches First Vehicle Dismantling Center in Morocco: A Step Towards a Circular Economy

On May 6, 2023, Stellantis, the multinational automotive giant, inaugurated its inaugural vehicle dismantling center aimed at serving the Middle East and Africa (MEA) region. This state-of-the-art facility, spanning 6,000 square meters and situated in the Aïn Sebaâ district of Casablanca, is designed to handle up to 10,000 end-of-life vehicles annually. This significant investment of €1.6 million (approximately $1.9 million) marks the third such center established by Stellantis globally, following similar operations in Turin, Italy, and São Paulo, Brazil. The Moroccan center is anticipated to generate around 150 direct and indirect employment opportunities once it reaches full capacity.

This initiative is part of Stellantis’ broader circular economy strategy, which is implemented through its dedicated SUSTAINera business unit. The center focuses on dismantling vehicles collected from various sources, including insurance companies, auction platforms, and specialized channels, in order to recover reusable parts. These components are subsequently resold through the company’s extensive after-sales network and digital platforms such as B-Parts, Distrigo, and Piyes. In addition, a specialized processing channel is dedicated to handling traction batteries from electrified vehicles.

Jean-Christophe Bertrand, Stellantis’ senior vice president for parts and services in the MEA region, highlighted the potential growth of the reused-parts market in Morocco, projecting it could reach a value of 5 billion dirhams (about $544 million) by 2030. Currently, Morocco boasts around 4.7 million vehicles on the road, with over 17,000 vehicles reaching end-of-life status each year, according to group statistics.

The establishment of this dismantling center not only reinforces Stellantis' commitment to sustainability but also showcases Morocco's rising significance as an industrial hub within Africa's automotive sector. In 2025, Morocco surpassed South Africa to become the continent's largest vehicle producer, achieving the historic milestone of producing over one million vehicles in a single year, as per national statistics. Meanwhile, South Africa's automotive industry faces challenges from increased competition, particularly from Chinese manufacturers, as well as ongoing energy issues.

The dismantling facility complements Stellantis’ already robust industrial presence in Morocco, which includes the Kenitra manufacturing complex, currently undergoing expansion with an investment of €1.2 billion aimed at doubling production capacity and increasing local integration to 75% by 2030. The Africa Technical Center located in Casablanca further underscores Stellantis’ commitment to the region.

Bertrand emphasized the potential for growth in the MEA region, suggesting that the operations established in Morocco could serve as a model for development in other markets. Designed as a pilot project for the region, the Casablanca center is expected to cater not only to the local market but also to West Africa, where Stellantis plans to enhance the automotive spare-parts value chain. However, it remains to be seen how informal second-hand spare parts operators, who are deeply entrenched in numerous African cities, will adapt to the evolving landscape of automotive recycling as industrial practices become more prevalent.

As reported by ecofinagency.com.

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