It previously operated the plant on a joint-venture basis with Naza Corporation (the Philippines also sources its products through this joint-venture).

In a statement, Stellantis said the completed acquisition marks a significant milestone for the group in Southeast Asia, and that it plans to invest and dramatically expand its footprint as part of a robust localization strategy. In Malaysia, for example, the distributorship of the Peugeot brand was taken over by Mazda distributor, Bermaz.

“Stellantis is deeply committed to growing our presence in ASEAN, and taking full ownership and responsibility of the plant in Gurun, Kedah is a very important step towards strengthening our operations, production outputs and workforce in the region.

“We have an ambitious growth strategy that will enable us to build on the existing production outputs in Gurun, as well as extend the breadth of brands and models within the Stellantis portfolio built in ASEAN for ASEAN. This is a very exciting proposition,” said Christophe Musy, senior vice president, ASEAN & general distributors at Stellantis.

Manufacturing at the plant has recently restarted, with the launch of the refreshed Peugeot 3008 and 5008 that are currently being rolled out across the region. The Peugeot 2008 (see above), said Stellantis, will also start production here this month, which will bring the new compact SUV offering from the brand to the ASEAN region.

Musy said the group has seen increased demand for Peugeot in the region in spite of the pandemic, and production at the plant has now returned to pre-pandemic levels, with volumes being ramped up for the remainder of 2021 to re-establish car flow to Malaysia, Thailand, and the Philippines.

“We are working closely with our partners to increase plant capacity by almost 40 percent to meet demand, and this combined with our strong product plan and determination to achieve the highest standards in quality and safety has set us up for great success in Malaysia,” he added.