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Wednesday, 19 April 2017

More signs of an ailing auto industry: Job, production cuts, rise of counterfeit spare parts

Layoffs, assembly slowdown in auto industry? The auto industry is apparently going through a spate of layoffs, with 10-15% of employees having been let go from January to April, according to Egyptian Automotive Manufacturing Association head Hassan Suleiman. He tells Al Mal that the job cuts have been primarily targeting sales managers and other mid-level positions, pointing to what he said is a 70% drop car sales. This comes as assemblers are reporting planning to slow assembly line operations, according to sources in the industry. Spare part sales have also been significantly hit, falling 60% this year on the back of a 10% increase in prices, said the deputy head of the Spare Parts Division of the Cairo Chambers of Commerce Shalaby Ghaleb. The move is leading to a proliferation of counterfeit parts, he tells the newspaper.

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