(DNE Photo)
Egyptian businessman Karim Naggar garnered media attention the past few months after a major conflict emerged with his partners in the Egyptian Automotive & Trading Co. The conflict at the company, which is also the Egypt agent for Volkswagen and Audi, escalated as far as the courts.
Although Naggar was the company’s chairman for over 15 years, his name never gained this much publicity, as he always refused to appear in the media and has held few interactions with the press. Naggar exclusively opened up to Daily News Egypt about the company’s situation, the case, and the impact it had on the company.
What is the company’s current legal situation?
The company’s legal situation is completely safe, and we are operating normally with no impact on our workflow. We are committed to providing the customer with all possible services, and we try hard to develop the working system to satisfy our clients.
What is the truth behind your giving up the company? What is the case?
I absolutely did not, and will not, give up my company. There is a conflict with partners, which led one of them to file a suit against me, personally, without harming the company.
What is the final status of the suit?
The suit is now in the hands of the judicial system, and I refuse to talk about it. I trust the judicial system to give me back my right.
There has been news recently that some businessmen tried to buy the agency, is this true?
It is. Many Egyptian businessmen have been trying for years to acquire Volkswagen and Audi as agents. However, all their attempts failed to buy the company. These attempts have always been there. We faced more than once attempts to shake the company’s position in Egypt. The proof of this is when another company tried to acquire the agency of the cars five years ago, but it could not compete with our company.
Will we see Volkswagen and Audi models produced in Egypt soon?
Of course not; these are only some suggestions. It has become hard to assemble cars in Egypt, because in a few years the European products will enter Egypt without paying any customs. So it is pointless to assemble. The government’s vision also is not very clear which makes it not attractive for investments.
Honestly, what is the German company’s opinion of the Egyptian market?
Honestly, the German company believes the Egyptian market could do better. It lacks a clear vision, future plans, stability, and wise decisions.
What are the most prominent problems and obstacles that you believe impact the functioning of the company?
The most prominent problems are the unavailability of foreign currencies and the inability of banks to make the currencies available. I hope this critical period will end quickly, as companies are greatly dependant now on stocks that are close to running out. If the situation continues, car showrooms will shut down, and if cars were available, they would be sold with twice their price because of their scarcity.
Large numbers of employees in your company have left – what is the main reason and is it due to the lawsuit?
No, the lawsuit did not affect workers in the company; they know the reality of the situation. However, about 25 employees of expertise have quit their jobs in the middle of last year, because the German company opened a main branch in Saudi Arabia. Our employees had great expertise and they were contacted on a daily basis, which prompted me to lodge a complaint to the parent company because of these offers. In our company, we invest nearly EGP 2m annually to train staff, making them the best in the labour market. This is the real reason behind the employees leaving the company.
When do you expect the dispute to end between you and company members?
I expect it to end very soon in a friendly way. After all, it’s a dispute between company parties, and we have worked together for more than eight years. These disputes usually end with conciliation between the two parties.
