Fiat discontinues production of the 500 to make way for a new model at the Trafaoui plant

Change of direction for Stellantis in Algeria. At the Tafraoui plant, near Oran, where the Fiat 500 was a real commercial successthe Italian manufacturer has announced the end of production. A surprising decision, given the popularity of the city car, but one that can be explained by the arrival of a new strategic model: the Fiat Grande Panda.

A page turns for 500 in Algeria

Since its launch in December 2023, the Tafraoui plant has produced over 50,000 vehicles, the majority of them Fiat 500 hybrids. For the Algerian and North African market, this 500 represented an affordable and popular alternative, although technically based on the previous generation, now replaced in Europe by the new electric 500.

But Stellantis has decided to turn the page. In a press release, Fiat Algérie confirmed that production of the 500 would be phased out. The last customers will nevertheless be delivered, in line with the commitments made. And so as not to leave a vacuum, the plant is already preparing to launch production of the Grande Panda.

The Grande Panda, a strategic bet

Recently presented as a model with a broader positioning, the Grande Panda is set to replace the 500 on the Tafraoui assembly lines. Already produced in Serbia, it will join the Fiat Doblo (utility and wagon versions) already assembled on site.

For Stellantis, the choice was clear: opt for a vehicle with superior sales potential. The Grande Panda, more versatile and roomier than the 500, better meets the expectations of an emerging market like Algeria and North Africa, where demand is focused on practical, family-oriented cars.

In less than two years, the Tafraoui plant, located some fifteen kilometers from Oran, has become a key site for Stellantis in North Africa. In addition to its already significant volumes, it benefits from a strategic location, competitive production costs and a fast-growing Algerian automotive market, with its 45 million inhabitants.

For the time being, the Fiat Grande Panda produced in Algeria will be destined for North African countries. But with production difficulties in SerbiaThe new site could also serve as a Plan B for supplying other markets.