ArabGT

Stellantis COO Highlights Success of Localization Strategy

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In an enlightening dialogue on the Arab GT Podcast, Mousub Shasha engaged with Samir Cherfan, the Executive Director of Operations for Stellantis Group in the Middle East and Africa. The interview traversed Cherfan’s illustrious career, Stellantis’ strategic pivots, the automotive industry’s evolution towards electrification, and the competitive landscape shaped by global dynamics.

Cherfan’s journey from an engineer to a top executive encapsulates a narrative of relentless pursuit of innovation, strategic foresight, and a profound passion for the automotive world. Starting at Renault, transitioning to Nissan, and finally contributing to the formation of Stellantis, Cherfan’s career is a testament to his adaptive leadership amidst the industry’s evolving contours.

Under his stewardship, Stellantis has embraced a bold vision for electrification, earmarking significant investments to transition its diverse brand portfolio towards electric mobility. Cherfan emphasized Stellantis’ unique position with its vertical integration strategy, enabling control over the entire electric vehicle production ecosystem, from battery manufacturing to securing raw materials, setting the group apart from its reliance on external suppliers.

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The director also discussed a distinctive feature of this extensive automotive group, which encompasses 15 unique brands, focusing on their strategic commitment to localizing production—a move that differentiates them from competitors. He detailed how this strategy has notably succeeded in the past three years across Arab nations and Turkey, elevating profits from 300 million to an impressive 2.4 billion. This remarkable achievement signifies substantial progress for the company and marks a significant milestone in the automotive industry at large.

The discourse also ventured into the competitive dynamics introduced by the rise of Chinese electric vehicle manufacturers. Cherfan highlighted the essential balance between embracing open competition and safeguarding local industries to foster a globally competitive automotive landscape. He argued for fair competition and the strategic enhancement of local industries’ competitiveness as critical to sustaining innovation and market leadership.

Cherfan candidly shared insights into the challenges and opportunities presented by the global shift towards electric vehicles. He stressed the importance of a diversified energy portfolio, recognizing the varying energy needs across regions and the indispensable role of hybrid and hydrogen fuel technologies in transitioning towards a sustainable future. Cherfan’s vision for Stellantis is not just about leading in electric mobility but doing so in a way that is inclusive, adaptive, and responsive to the nuanced needs of different markets.

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In reflecting on his personal journey, Cherfan conveyed a powerful message to car enthusiasts and aspiring professionals: passion is the cornerstone of success. Whether it’s for a product, a process, or the broader industry, nurturing a deep-seated passion is crucial for driving innovation, overcoming challenges, and making impactful contributions.

This comprehensive interview with Samir Cherfan not only shed light on his personal achievements and Stellantis’ strategic initiatives but also offered valuable insights into the broader trends shaping the future of the automotive industry. As the industry stands at the cusp of a major transformation, driven by electrification and sustainability goals, leaders like Cherfan are pivotal in steering their companies towards a future that is innovative, competitive, and sustainable.

Watch the interview here :