Spanish media outlet El Debate voiced concern over Morocco’s growing automotive industry, describing it as a threat to one of Spain’s key production sectors.
This concern arises from reports that “the Kingdom is set to double its production capacity with models that were traditionally manufactured in Europe,” such as the Citroën C4, further undermining Spain’s position in the sector.
El Debate highlighted Morocco’s competitive advantage in automotive manufacturing, driven by lower production costs, including cheap renewable energy and lower labor costs, which have attracted investments from major automakers like Renault and Stellantis. Both companies have announced plans to expand their production capacities in the country.
The same source mentioned that one of the main car factories impacted is Stellantis’ plant in Villaverde, Madrid, which currently produces the Citroën C4 and C4 X models exclusively for the global market.
However, citing French media L’argus, El Debate stated that “this will no longer be the case from 2027, as the new generation of the C4 model will be moved to Stellantis’ plant in Kenitra, Morocco.”
It added that “Stellantis confirmed its intention to drastically increase production at the Kenitra plant, where about 200,000 vehicles are currently made, with plans to rise to 450,000 following recent investments.”
In contrast, Villaverde, according to the same source, “produced over 105,000 units of this model last year, but production is expected to fall to between 80,000 and 90,000 units this year.”
It added that “the new C4 will be built on the Smart multi-energy platform, which was awarded to Morocco in 2022 and represented a 300-million-euro investment. The factory currently produces Citroën Ami, Opel Rocks, Fiat Topolino, and Peugeot 208 microcars.”
The same source predicted that Villaverde is likely to be assigned a new model in the medium term. However, it said that poor electrification figures complicate the process, as manufacturers are uncertain about how demand will evolve and how vehicle assignments will be distributed across plants, especially considering public subsidies.
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