Filenews 22 November 2025
Saudi Arabia is exploring a strategic partnership with global automaker Stellantis, with the aim of establishing a vehicle manufacturing plant in the Kingdom, as part of the effort to evolve into a regional hub of advanced manufacturing and innovation under Vision 2030.
The Saudi Ministry of Investment (MISA), the National Center for Industrial Development (NIDC), Stellantis, and Petromin Corporation have signed a quadrilateral Memorandum of Understanding (MoU) to explore a joint vehicle manufacturing project within the country.
The signing ceremony took place on November 19, 2025, at the John F. Kennedy Center in Washington, D.C., as part of the US-Saudi Investment Forum, which serves as a platform to strengthen economic cooperation in energy, technology, financial services, infrastructure and health, but also as a networking space for investors and business leaders from the two countries.
What does the Memorandum of Cooperation provide?
The joint initiative will assess the feasibility of establishing a production plant for commercial and passenger vehicles in Saudi Arabia, building on Stellantis' portfolio of American brands.
The plan aims to increase local value-added rates in the vehicle industry, develop the domestic automotive industry, and make it long-term viable in the Kingdom.
The partnership combines the complementary strengths of the four actors – government authorities, a global vehicle manufacturer and a local industrial and energy player – with the aim of creating a competitive and sustainable automotive ecosystem in Saudi Arabia.
The MoU is an important step in deepening the cooperation between Stellantis and Petromin, on the basis of a Business Cooperation Agreement signed earlier this year, with the common goal of establishing a strong industrial presence in the Kingdom.
New jobs and strengthening of the local economy
The project under consideration is expected to create employment opportunities, strengthen regional supply chains and stimulate the development of small and medium-sized enterprises (SMEs) linked to the production of vehicles.
At the same time, it supports Saudi Arabia's goal of becoming a center of advanced manufacturing and innovation, in alignment with the 2030 Vision for economic diversification beyond the hydrocarbon sector.
Who is Stellantis and why is Riyadh interested in
Stellantis N.V. is a multinational car manufacturer, created in 2021 through the merger of the French PSA Group with Fiat Chrysler Automobiles (FCA). FCA had already emerged from the merger of the Italian Fiat with the American Chrysler, a process that was completed in stages in the period 2009–2014. The company is headquartered in Hoofdorp, the Netherlands, while the CEO operates from Auburn Hills, Michigan.
As of 2025, Stellantis was ranked as the world's fifth-largest automaker by global sales volume, behind Toyota, Volkswagen Group, Hyundai Motor Group, and the Renault–Nissan–Mitsubishi Alliance. In the same year, it was ranked 61st on the Forbes Global 2000 list of the world's largest publicly traded companies, while its shares are listed on Euronext Paris, Borsa Italiana, and the New York Stock Exchange.
The company designs, manufactures and markets vehicles under 14 brands: Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep, Lancia, Maserati, Opel, Peugeot, Ram Trucks and Vauxhall. At the time of the merger, Stellantis employed approximately 300,000 workers worldwide.
For Saudi Arabia, a partnership with a global group of this size is associated with:
- transfer of know-how to the automotive industry;
- local production and development of industrial infrastructure;
- and strengthening the Kingdom's international image as a high-tech investment destination.
