..:: AUTO REPORT AFRICA ::..
Related Articles
The delay by the Egyptian Parliament in passing the country’s Automotive Directive into law may be holding back a lot of investments into the country’s auto sector. The Automotive Directive is an auto development strategy draft aimed at opening the country’s auto sector to investments with mouth-watering incentives for local assemblers.
French carmaker, Peugeot-Citroen, however, says it will be putting on hold further investment plans into Egypt’s auto sector until the fate of the Auto Directive is made clear and the incentives it will be offering for local assemblers are laid bare.
The French car giant had entered into discussions with seven Egyptian auto components manufacturers, under the auspices of Egyptian Federation of Industries’ automotive feeders, with the aim of encouraging and turning them into feeders for Peugeot production lines and other emerging cars production lines in Kenya.
The component manufacturers are AutoCool Egypt, Dr. Greiche Glass, Boysen Egypt, Industrial Control for Engineering Industries, El Teriak Industrial Group, and the Industrial Development of Automotive Components.
However, PSA says it would wait until the Automotive Directive is made clear before going ahead with the plans just as the Parliament keeps delaying action on the Directive despite promises to make it a “top priority.”
This decision is coming just a day after Geely, a Chinese auto giant and owners of Volvo Cars, unfolded plans to turn Egypt into a regional manufacturing and distribution hub. The plans, however, depends on the passage of the Automotive Directive.
Source: Enterprise
