(AFP Photo)
By Ahmed Amer
Mercedes Benz is suspending its activities at the Egyptian-German Automotive (EGA) factories after a decision by Mercedes Benz International in 2010 to transfer its activities to Algeria instead of Egypt. The Mercedes Benz trademark was removed from EGA factories last December.
An official at Mercedes Benz told Daily News Egypt that the company recently halted its production lines in the EGA factories.
He added that the Egyptian-European partnership agreement will suspend car manufacturing in Egypt as well as the Mercedes Benz’s car assembly. This was due to their achieving no further economic benefits following the reduction of customs on imported cars from the European Union (EU), which will reach zero by 2019.
The decision was taken in 2010, the same time when the reduction, amounted by 10%, was applied on European cars.
The official believes the decision to suspend domestic production will not affect Mercedes Benz’s sales in Egypt. Further, the after-sales services offered will not be suspended, as the company is focusing on its improvement.
He stated that the cars will not be manufactured in Egypt and will be imported from abroad and this will not affect sales.
He said Mercedes Benz intends to start its activities in Algeria due to industrial incentives offered by the Algerian government. Moreover, the Algerian government provides the lands companies can establish factories on, and companies can own the land after a set period of time.
