Peugeot considers assembling cars in Egypt
Peugeot is mulling assembling some of its car models to Egypt and is currently looking at several existing factories it could use, unnamed sources familiar with the matter tell the local press. The sources did not disclose which facilities are being looked at, or the expected investment value and timeline for the potential move.
The French company would be the latest international automotive manufacturers to say it is looking to assemble cars in Egypt after the government began talking up a package of incentives to automakers designed to spur domestic automotive manufacturing and assembly. The incentives, which include customs breaks, were expected to be implemented in October through amendments to the Customs Act, but have yet to see the light of day.
Who else is interested? Mercedes-Benz is preparing to return to local assembly again as soon as early next year, and Korean automaker Kia has announced plans to assemble 15,000 cars annually locally. Germany’s Volkswagen is negotiating to assemble natural gas-powered cars in the local market. The government also opened talks with a number of foreign automotive companies, including India’s Tata and Japan’s Nissan.