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Sunday, 29 January 2017

Car importers to send House report with their requests for automotive directive

Auto importers look to dominate the debate on the automotive directive: Car importers and auto feeders are looking to stake their claim over the automotive directive as the House of Representatives resumed discussions on the legislation last week following an announced hiatus. Importers, including Volkswagen, Seat, Kia Motors, and Ford distributors Auto Jameel, insisted at a meeting with MPs that they include their input, and are preparing a report to send to the House with their demands, a parliamentary source told Al Borsa.

The group successfully lobbied MPs to make changes to the legislation, including raising the minimum requirement for component manufacturing companies to benefit from the directive to 100% from 25%. MPs also agreed to amend clauses that govern imported cars and components, the newspaper reports without clarifying which clauses. As we have noted previously, the battle lines for the directive have been drawn along assembler and importer-feeder lines, with the latter having intensified its lobbying efforts over the past three months to make serious changes to the legislation favored by assemblers. These have culminated in the CBE stepping in to suggest an alternative strategy. All experts who spoke with Al Borsa, acknowledge that no matter where one stands on the debate, these challenges will cause further delays in passing the law.

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