US automotive technology supplier Gentex Corp plans to open a manufacturing facility in Morocco by 2028, strengthening the North African country’s position as a hub for the automotive industry and bringing the company closer to its European customers.
The maker of auto-dimming rear-view mirrors and vehicle electronics has signed a memorandum of understanding with Moroccan authorities to support the project, according to Moroccan weekly magazine Challenge.
The new plant will supply automotive assembly lines in Europe, reflecting a broader shift among carmakers seeking to shorten supply chains following disruptions caused by the COVID-19 pandemic, geopolitical tensions and rising shipping costs.
European manufacturers have increasingly pushed suppliers to regionalize production to reduce the risk of shortages and improve resilience, making proximity to major markets a key consideration in investment decisions.
Morocco has emerged as a major automotive production base thanks to its location near Europe, extensive free-trade agreements and logistics infrastructure centered around the Tanger Med port complex. The country hosts assembly plants operated by global manufacturers as well as a growing network of suppliers.
Neil Boehm, a senior Gentex executive cited by Challenge, said the Moroccan facility would help meet customers’ localization requirements while maintaining profitability. Production of key electronic components will initially remain concentrated at the company’s existing plants as the new operation ramps up.
Financial details of the investment were not disclosed, and the exact location of the future factory has not been announced.
The automotive sector is Morocco’s largest export industry and a key pillar of its industrial strategy. The planned Gentex investment adds to a series of moves by global suppliers seeking to establish manufacturing bases closer to European markets
