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Automotive companies leave Ukraine for Morocco

The Russian invasion in Ukraine is pushing some companies in the automotive industry to leave this country, which was the center of gravity of the sector in Europe, to settle in Morocco.

Automobile companies based in Ukraine started by leaving the country in view of the persistence of the crisis with Russia, with no prospect of a short-term solution. Morocco is one of their preferred destination due to its solid industrial base in the sector distributed in Kenitra, Casablanca and Tangier, its skilled workforce, preferential trade agreements with the United States and European Union and low production costs.

The Irish multinational Aptiv, specializing in cabling systems, is one of those companies considering leaving Ukraine to settle in Morocco. Dismantling the site in Ukraine and starting production at the new site in Morocco will take at least six weeks, according to the company. Similarly, the Japanese company Sumitomo Electric Industries, which specializes in the manufacture of cables and optical fibers for vehicles, decided in March to move its production from Ukraine to Morocco and Romania.

These relocations to Morocco reinforce the reputation of the kingdom in the automotive sector. Some 250 companies in the automotive sector are established in Morocco, with a production capacity of 700,000 vehicles per year and some 220,000 jobs created. The main factories are those of Renault in Tangier, which started its activities in 2012 and Stellantis which started production in June 2019. The kingdom, in partnership with the Chinese company BYD, will also soon produce electric vehicles in Tangier.

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