French media reports indicate that Renault, the French automotive manufacturer, has yet to receive authorization from Algerian authorities to reopen its factory in Oran. The delay is reportedly linked to ongoing political and diplomatic tensions between Paris and Algiers.
According to the same sources, Renault’s factory on the outskirts of Oran, specialized in assembling and producing vehicles, has been ready to resume operations since last year. However, the Algerian authorities are behind the prolonged shutdown, with no signs of an imminent reopening.
It is expected that Algeria will continue refusing to grant Renault permission to restart operations, particularly as previous reports suggested Algeria aims to replace French investments in the automotive sector with Chinese investments, especially amid the ongoing political crisis with France.
This speculation gains further credibility when considering prior Algerian media reports that criticized Renault’s investment in Algeria, arguing that it does not serve the country’s economic interests and that the primary beneficiary is the French company rather than Algeria. This stands in contrast to Renault’s investments in Morocco, which have significantly contributed to the country’s automotive sector growth.
Last December, the Moroccan daily Al-Ahdath Al-Maghribia revealed that Abdelmalek Sellal, the former Prime Minister under Abdelaziz Bouteflika, admitted during his corruption trial that the Algerian regime had spent billions from oil and gas revenues to tarnish Morocco’s reputation and hinder its economic and developmental progress.
The same source further reported that Sellal disclosed in court that the Bouteflika regime spent approximately $1 billion to undermine Renault’s planned investment in Morocco at the time. This was a reference to the Tangier factory investment, which created 6,000 jobs when it launched in 2012.
Morocco’s success in the automotive sector has been perceived as a "negative" signal by Algeria, which sees itself as a regional power. This prompted Algeria to intensify efforts to enter the car manufacturing industry and compete in the market. Consequently, the country has opened its doors to Chinese automakers to establish manufacturing units, facilitated by new Algerian laws offering tax exemptions and other incentives to attract foreign investment.
According to reports from last year, three Chinese companies—Chery, JAC, and Geely—plan to invest in Algeria’s automotive industry. Executives from these companies have announced their intentions to establish car manufacturing plants within the country.
To avoid repeating its "unconvincing" experience with Renault—especially after the French company prioritized Morocco—Algeria has imposed strict integration requirements on foreign automakers. Companies setting up local manufacturing operations must ensure a minimum local integration rate of 10% after two years, 20% by the third year, and 30% after five years of operation in Algeria.
Regarding the ongoing crisis between France and Algeria, French reports attribute it primarily to Algeria’s rejection of Paris’ move last July, when President Emmanuel Macron declared his country’s support for Morocco’s sovereignty over the Sahara, stating that "the present and future of the Sahara fall under Moroccan sovereignty."
Since last July, Algeria has escalated tensions with France in an unprecedented manner, reinforcing claims by experts on the Sahara issue that Algeria—not the separatist Polisario Front—is the real party to the dispute. As a result, Renault has found itself a casualty of the crisis between the two countries, caught in the midst of Algeria’s attempts to pressure France.
