Stellantis Vigo: From CKD to SKD to PaP and a Growing Global Footprint

Stellantis Vigo, previously known as PSA, achieved a production milestone of 547,000 vehicles in 2007. During those years, factory management routinely transferred data each year just before Christmas, encompassing vehicles from its two own lines and CKD shipments, as well as dismantled units sent to the group’s other factories abroad. These shipments formed part of a broader strategy to publish summary figures, noting that Balaídos stopped assembling dismantled vehicles at the Spanish level, while three plants reached a notable 56,000 units in 2007. The operation increasingly focused on SKD (semi-knocked down) collections and PaP (Piece by Piece), which are integral to Balaídos. The plant maintains its own workshop, and there is growing activity with mass production of the Fiat Doblò minibus for the facility being built in Algeria. Along with Algeria, Stellantis Vigo now extends its reach to seven global locations, reflecting participation in facilities across multiple continents, including Argentina, Brazil, Morocco, Pakistan, Malaysia, and Vietnam.

As reported by Faro de Vigo of the Prensa Ibérica group in November, Stellantis Vigo is set to ship 1,000 containers per month of Doblò parts to the Algerian port of Oran starting next year. From Oran, dismantled vans will be moved to the Tafraoui facility, where they will be assembled mainly for sale on the local market, supporting the operation of a new plant in which more than €200 million has been invested. This move marks a significant expansion in the group’s North African footprint and demonstrates the strategic importance of Algeria within Stellantis’ global logistics network.

But Doblò is not the only case. This shipping approach is already a standard feature at Balaídos, where a workshop preps bodies and various components, grouping them like a puzzle to fill containers. This workflow underscores the efficiency of the company’s assembly and shipping operations, which leverage semi-assembled and fully disassembled configurations to optimize international distribution.

At the assembly of the Peugeot 208 in Argentina. STELLANTIS

These configurations are known as SKDs and have long been referred to internally as CKDs, with CKD denoting completely disassembled units and SKD referring to semi-dismantled bodies and components. PaP also appears as a shorthand for these shipments, which include all parts not previously supplied to the receiving facility along with components provided by suppliers for packaging and transport.

destinations

Before the North African project, Stellantis Vigo shipped its own models, notably the Peugeot 2008 SUV, to six countries through the group’s European facilities. Morocco stands out as a key destination, where the Kenitra plant saw a €300 million investment last year to double capacity, producing the 208 alongside new electric micro-models such as the Citroën Ami, Fiat Topolino, and Opel Rocks-e. While Morocco’s automotive sector expands rapidly, SKD shipments from Balaídos are not locally sourced and function as a logistics hub for the broader network.

Argentina hosts two Stellantis plants, including one at Pigeon and another near Córdoba. The assembly workshop there also sends 208 components and Citroën Berlingo SKDs, though the K9 variant is not part of the current PaP mix. In Brazil, Balaídos supports two facilities, one in Betim and another in Porto Real near Rio de Janeiro, shipping 2008 SKDs and PaPs for Citroën C3 and C4 Cactus models.

Asia

Some Balaídos SKDs travel farther, reaching Asia through agreements dating back to PSA’s era. Two active models appear across three factories: a locally produced Peugeot 2008 and a Peugeot 3008 unit produced at Sochaux. The necessary components for assembly are shipped as part of the arrangement, with a local Chulai factory in Vietnam serving as a production site linked to Truong Haï Auto Corporation since 2017.

Additionally, as a result of projects pursued before the merger with FCA, Vigo exports these car collections to Malaysia and Pakistan. In Malaysia, the alliance with local partners continues, as observed in ongoing discussions with Naza and Lucky Motors for the latest models.

With this expanded global footprint, Balaídos’ collection workshop has grown. There were early plans for a Porriño factory, but the SKD footprint expanded by repurposing space from a battery assembly section to a new workshop closer to the main assembly lines. Union sources indicate workforce impact is still being assessed, and staffing needs may rise to support the expanded operations.

The new Fiat Titano is heading to Algeria. STELLANTIS

The exit date for Stellantis’ new factory in Algeria has become clearer: it will be operational soon

Stellantis has disclosed a €650 million investment across Africa within a year, including a push into Algeria where PSA’s historic plan to build local factories resumes. An industrial unit with €200 million in funding will begin assembling vehicles arriving in kits from Europe. One model will be the Fiat Doblò, while the K9 van produced at Vigo will also be part of the mix. Tafraoui will start with the Fiat 500, with a target to begin operations next week. Algerian media have reported a December 11 opening date, and there has been speculation about the CEO’s participation in this milestone, as Carlos Tavares is expected to visit Vigo to announce a new platform alongside the STLA Small and the updated Peugeot 2008 generation. The Fiat brand remains a strong bet for the Algerian market.

Recently, Stellantis announced that the Fiat Titano would be marketed as exclusive to Algeria; however, it will also be available in Brazil. The vehicle mirrors the Peugeot Landtrek, now available to order locally, boasting robustness, off-road capability, impressive payload, and strong towing capacity to meet a range of professional needs.