Back to the complete issue
Thursday, 19 October 2017

Peugeot-Citroën halts Egypt investment plans until the fate of the Automotive Directive is made clear

Peugeot-Citroën halts Egypt investment plans until the fate of the Automotive Directive is made clear: Peugeot-Citroën halted negotiations with seven auto component manufacturers pending clarity on the much-anticipated Automotive Directive, Egyptian Federation of Industries’ automotive feeders division member Hossam Abdel Aziz tells Al Mal. The French automotive manufacturer had entered talks with AutoCool Egypt, Dr. Greiche Glass, Boysen Egypt, Industrial Control for Engineering Industries, El Teriak Industrial Group, and the Industrial Development of Automotive Components with an eye to benefit from the incentives laid out in the Automotive Directive. Abdel Aziz says he expects negotiations to resume once the directive — which offers local assemblers incentives to go further up the value chain — becomes law. This comes just one day after Chinese auto firm Geely announced it has plans to turn Egypt into a regional manufacturing and distribution hub, but that these plans are contingent on the passing of the directive. The House of Representatives’ Industry Committee had said earlier this month that the Automotive Directive would be a “top priority” on its agenda, whose opposition from auto importers has caused the legislation to remain dormant for several months.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.