Under the initiative, Opel is set to become the “first” automotive manufacturer to produce engines locally in the country. Credit: Opel / Stellantis

Opel has confirmed plans to establish a vehicle manufacturing plant in Algeria and signed a separate memorandum of understanding (MoU) with AGM Holding to localise engine production in the country.

The vehicle plant was confirmed within the wider economic and industrial cooperation agenda between Germany and Algeria discussed at the German-Algerian Economic Forum in the German capital Berlin.

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Opel said the manufacturing project would follow a “local-for-local” approach aimed at strengthening its long-term presence in the Algerian market.

In a separate step, Opel Automobile and AGM Holding signed a MoU confirming their intention to include a local engine manufacturing line within Opel’s planned industrial footprint in Algeria.

Under the initiative, Opel is set to become the “first” automotive manufacturer to produce engines locally in the country.

The company said the two projects are part of broader economic and industrial cooperation between Germany and Algeria and are designed to support the development of Algeria’s automotive ecosystem while creating investment opportunities across the automotive value chain.

Opel Automobile CEO Florian Huettl said: “Our ambition is to make Opel’s German engineering expertise and mobility solutions accessible to even more customers around the world.

“Today’s agreement lays the foundation for long-term cooperation with our Algerian partners and reinforces our shared ambitions to create sustainable value. The project will support the development of Algeria’s automotive ecosystem while creating the required local production capacity for Opel.”

This comes on the heels of a separate announcement Opel made in May, when it revealed plans to build a new fully electric C-segment SUV in Europe – the first model to emerge from the expanded partnership between Stellantis and China’s Leapmotor.

That SUV is slated for a 2028 market launch and is meant to act as a template for further joint work between Stellantis and Leapmotor, while also broadening Opel’s EV lineup.

It will sit in the range alongside the existing Grandland, Frontera and Mokka SUVs.