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CDCM Drags Peugeot Citroen to Court Over Egypt Dealership

French car maker, Peugeot Citroen, a member of Groupe PSA, may have ran into troubled waters in Egypt over its decision to end its 41-year-old partnership with Cairo For Development and Cars Manufacturing (CDCM), a subsidiary of  Arabia Investments, Development and Financial Investment Holding Company (AIND) .

Enterprise, an Egyptian news service, reports that the decision of Peugeot to dump  CDCM as its agent in the North African country after 41 years for a consortium of Mansour Group and Dubai-based Scope Investment just a month to the renewal of the agency agreement with CDCM may have sparked this trouble. According to Enterprise, CDCM had already engaged the services of a top lawyer and international arbitration expert, Ashraf Yehia, to file a law suit against Peugeot in order to protect the rights and interests of its stakeholders even as Peugeot is expected to announce a new agent soon.

Peugeot had shocked CDCM and the automobile industry in Egypt when it announced that it would not be renewing the agency contract with the Egyptian dealership only one month to the renewal of the contract, according to Alborsanews, another Egyptian news service. The report added that CDCM was thrown into confusion by the unexpected announcement and had immediately threatened to drag the French car maker to court over the matter.

The Egyptian dealership is said to be waiting to receive an order from Peugeot and the cars had arrived at an Egyptian port already waiting to be cleared from the ports.

CDCM is said to have been shocked that it was not given any prior notice on the plan by Peugeot in the past six months as the announcement was made without consideration of its sales and investments as well as the level of after-sales services being offered by CDCM and the automotive industry to Peugeot customers in Egypt. 

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