Daimler Truck achieves production milestone

Daimler Truck Southern Africa (DTSA), the East London-based truck assembly plant, marked a significant achievement recently by officially rolling off the 800 000th Completely Knocked Down (CKD) kit from its parent factory in Woerth, Germany.

The vehicle, a Mercedes-Benz Actros 2645LS/33, emerged from the assembly line in a joint celebration with the Woerth source plant in Germany. Sesfigile Logistics and Safety One Logistics, both owned by Nelen Gounder, purchased the truck to commemorate their respective 20th and 10th anniversaries.

The Woerth plant, founded in 1963, is Mercedes-Benz Trucks’ largest truck assembly facility. Here, the Actros, Arocs, and Atego model series take shape. Additionally, Woerth produces the battery-electric Mercedes-Benz eActros 300/400 for distribution haulage, along with the eEconic electric series-production truck for municipal use. The eActros 600, designed for long-distance haulage, is set to enter series production by the end of 2024.

The East London assembly plant boasts a storied history spanning six decades. From the first Mercedes-Benz Truck in 1962 to thousands of trucks and buses today, the plant remains a cornerstone of the Buffalo City Metropolitan Municipality.

Employing around 300 people, it ranks among Daimler Truck’s largest CKD-plants outside Europe. In 2019, DTSA assembled its 750 000th CKD unit, a Mercedes-Benz Actros 2652 LS 6×4.

Gladstone Mtyoko, Vice President for Manufacturing, acknowledged the complexity of assembling products from four different source plants on a single production line. Despite this, the team consistently delivers high-quality units. The assembly of the 800 000th CKD truck stands as a proud milestone for both the Woerth and local East London plants.

Sesfigile Logistics commands a fleet of 200 trucks, specializing in beverage and petroleum transportation. Its reach spans local, national and cross-border logistics, while. Safety One Logistics, grounded in precision and efficiency, handles petroleum and specialized products with care.

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Cape 1000 back again next year

The Cape 1000 is set to return for its fourth edition from in March 2025. The event, which annually adjusts its routes to showcase different parts of the Western Cape, will start at the V&A Waterfront in Cape Town, with stops in Hermanus, Franschhoek, and Ceres, before concluding back in Cape Town.

It will again be hosted in partnership with Private Clients by Old Mutual Wealth and will feature a new collaborator, the Official Ferrari Dealer Scuderia South Africa. Scuderia South Africa plans to participate with four vehicles, including both modern sports cars and classic models.

Entries for the event are now open, with participation limited to 65 cars. The Cape 1000, which started in 2022, is a regularity rally inspired by international tribute races. 

It features four categories: Pre-1976 (Classic), 1977-1996 (Modern Classic), 1997-current (Sports), and Restomod/Recreation. This diversity allows a wide range of vehicles to compete, contributing to the event's unique character.

Event Director Vanessa Crichton expressed enthusiasm about the upcoming rally, highlighting its international appeal and the scenic routes that will be featured once again. The organisers intend to place greater emphasis on the regularity rallying component in next year’s event, while still maintaining the grand touring experience.

Private Clients by Old Mutual Wealth, a company specialising in investment and wealth management, continues to support The Cape 1000. Jean Minnaar, Managing Director, noted the alignment between the event’s celebration of engineering excellence and the company's core values. Minnaar also acknowledged the event’s role in attracting collectors from around the globe to South Africa.

Participants can look forward to an experience marked by stunning landscapes, high-quality accommodation, and strong camaraderie. Registration details are available at www.cape1000.com.

Proceeds from the event will support the Motorsport Legends Benevolent Fund, which provides financial assistance to members of the motorsport community in need, particularly those of older generations.

The event will also support the QuadPara Association of South Africa (QASA), a leading organisation representing individuals with spinal cord injuries and physical disabilities, offering programmes and services aimed at societal integration.

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Double points spices up Rally Raid where Ford hopes to capitalise

The South African Rally-Raid Championship (SARRC) is gearing up for the second half of the 2024 season with two back-to-back races in Parys, Free State, this weekend. The Neil Woolridge Motorsport (NWM) Ford Rally-Raid Team is determined to capitalise on this opportunity to accumulate vital points.

This double-header weekend, the only one of its kind in the 2024 season, will see competitors tackle approximately 800 km of challenging terrain, with the INGCO Parys 400 on Friday and the INGCO Vaal 400 on Saturday. The stakes are high, as double points are on offer, which prove decisive in the battle for the championship as the season edges towards its conclusion in November.

#Lance Woolridge and Kenny Gilbert

Lance Woolridge and Kenny Gilbert, driving the EcoBoost-powered and Shell-sponsored Ranger (#234), are currently leading the NWM Ford charge. After an impressive performance at the Safari 1000 marathon event in June, where they secured second place, they now sit third in the Overall Production Vehicle standings. They are just seven points behind Toyota’s Giniel de Villiers and Elvéne Vonk and 23 points behind the current leaders, Henk Lategan and Brett Cummings (Toyota).

In the fiercely contested Ultimate (T1+) class, Lance and Kenny are tied for third place with Toyota’s Guy Botterill and Dennis Murphy. With every point crucial, the competition over the two days promises to be intense.

Reigning champions Gareth Woolridge and Boyd Dreyer (#200) have had a challenging start to the season, but their determination and speed saw them finish fourth overall in the previous round, boosting them to sixth in the overall standings and seventh in the Ultimate class. With only a few points separating them from their rivals, Gareth and Boyd are focused on regaining ground in their NWM Ford Ranger.

#Gareth Woolridge and Boyd Dreyer

"We’ve traditionally done well at the Parys events and are excited to push our two Rangers to their limits," said Neil Woolridge, NWM Ford team principal. "After the tough Safari 1000 marathon, we’ve stripped the cars down and thoroughly prepared them for the second half of the season. With the unique challenge of back-to-back races, it’s crucial that we secure good points on Friday without taking unnecessary risks, so we’re in a strong position for Saturday."

Wors Prinsloo and Andre Vermeulen (#241), part of the NWM-supported privateer team, had a strong showing at the last race in their newly upgraded NWM Ford Ranger. Having consistently scored points throughout the season, they are eager to climb higher in the championship standings from their current 11th overall and ninth in the Ultimate class.

#Ford seeking to gain valuable points

The race weekend will be based at the Stonehenge River Lodge in Parys, which will serve as both the race headquarters and the service park. The action kicks off with Round 4, the INGCO Parys 400, on Friday, beginning with a 15 km sprint qualifying loop at 07:10, followed by the main 175 km race at 08:30. Saturday will see Round 5, the INGCO Vaal 400, with a 10 km qualifying sprint and two loops of 190 km each.

Fans can stay connected and follow the action by tracking the crews’ positions throughout the races using the RallySafe app, available for download on iOS and Android devices.

Images: Colin Mileman

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Citroën C3 Aircross: Stylish and Practical 1.2 Turbo SUV Review

Of all the motor manufacturers scattered across the globe, Citroën stands out as the one most prepared to seriously challenge design and styling norms and has produced some spectacular, quirky and iconic cars over the years.

Originally launched into South Africa in 1919 the marque quickly developed a dedicated following that continues today through the Citroën Car Club and members own cars dating back to 1925 when it introduced the 5HP Torpedo, or Roadster, which was a two-seater with a simple hood and a fish tail shaped rear.

Since then, the company has introduced a host of innovative and well left-of-field designs including such models as the 1980 Karin, 1986 Xanthia, 1988 Activa 1 and others including the Citela and Bijou. Not all of these were successful or big sellers, but that has never deterred its designers from pushing that proverbial envelope.

The company’s history in South Africa is also one of here, not here and back again where it is now part of the giant conglomerate of Stellantis and slowly, but steadily, building a new following – the latest of which is the C3 Aircross, the second model to be launched locally as part of the brand's C-Cubed programme.

My test unit was the MAX 1.2 Turbo in 5-seater configuration but it can also be specified in 7-seat format and the target audience is very much families seeking space and practicality, while also appealing to young professionals with its blend of style, innovation, and safety.

The style harks back to that first introduced with the Cactus – which I rather liked with its external bump protectors – and is one that will remain modern looking for a good many years.

Positioning it on the price ladder it comes up against the Toyota Urban Cruiser 1.5 XS (R342 500), Nissan Magnite 1.0 Turbo Acenta Plus manual (R343 200) and Haval Jolion 1.5T City (R345 950), making its R344 900 price tag extremely competitive.

The SUV is powered by a 1,2-litre turbo-charged PureTech engine delivering 81 kW at 5 500 r/min and 205 Nm of torque from 1 750 r/min, paired with a six-speed automatic transmission. Fuel consumption is claimed at 6,3 l/ 100 km but in the real world of my test cycle, the average was 7,5 l/100 km.

This sits in comfortably with what one could expect from the other price competitors but, interestingly, except for the 1,5-litre Haval, the Citroën has more power and torque on offer and this can be felt in both the urban and rural settings where the willing and energetic engine makes light work of both traffic and higher speed runs – even if it is no dragster getting off the line with 0-100 km/h coming up in around 11 seconds.

It has a length of 4 324 mm and a width of 1 796 mm with 200 mm of ground clearance for those forays off the tarmac – this spirit of adventuring complemented by 444 litres of luggage space and 839 litres with the rear seats folded.

The wheelbase of 2 671 mm adds to its solid feel on the road and its driveability is made easier by steering that is sufficiently light in low-speed parking scenarios and hefty enough as the speed increases to inspire a confident approach to the twisties.

For a car displaying quite a lot of plastic trim, the noise, vibration and harshness levels are particularly low, making the open road your chosen musical accompaniment not having to compete with wind noise, rattles and tyre rumble over that intricate guitar solo.

To achieve price parity, especially against the Chinese automakers, Citroën has moved much of its production to the East and this has paid off, considering the price positioning of the C3 Aircross and its level of standard specification – the only complaint here in the fact it has only two crash bags up front.

It rides on 17-inch alloy wheels and has anti-lock braking, Electronic Stability Program (ESP), tyre pressure monitoring, hill-hold assist, internally adjustable headlight positioning and a rearview camera all fitted as standard.

Up front, the dashboard includes a soft-touch finish and a seven-inch TFT cluster, along with a 10-inch touchscreen that provides access to infotainment and connectivity options, including Apple CarPlay and Android Auto.

The Citroën C3 Aircross comes with a 5-year/100 000 km warranty and a 4-year/60 000 km service plan. The brand also offers the Stellantis WePledge programme, which includes additional support such as mobility guarantees and security assistance.

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Africa Automotive: Morocco usurps South Africa as leading auto hub

In the realm of motoring manufacturing in Africa, Morocco has emerged as a surprising leader, outpacing traditional powerhouse South Africa. With a strategic geographical positioning, favourable economic policies, robust infrastructure, a skilled workforce and competitive production costs, Morocco has become the continent's auto hub.

Morocco's advantageous positioning on the world map, nestled at the junction where Europe, Africa and the Middle East converge, naturally bestows upon it an unparalleled edge in market accessibility. This prime location not only facilitates the seamless movement of goods across borders but also significantly reduces transportation costs and timeframes.

Automakers, in pursuit of establishing a global footprint, find Morocco's proximity to European markets particularly appealing, as it enables them to cater to a diverse customer base with heightened efficiency. The nation’s strategic placement is not merely a geographical boon but a gateway that opens up a spectrum of opportunities for the auto industry to thrive.

By capitalising on this unique advantage, Morocco has adeptly positioned itself as a central hub in the automotive sector, offering access to a vast array of markets. This strategic geographical positioning is a cornerstone of Morocco's ascendancy in becoming the pre-eminent auto manufacturing hub on the African continent, underscoring its significance in the global automotive landscape.

Favorable Economic Policies and Investment Incentives

The Moroccan government has been astutely aware of the potential economic uplift that the automotive sector could usher into the nation. In a strategic move to harness this potential, an array of favourable economic policies and enticing investment incentives have been put in place.

These policies are not just superficial lures but are deeply entrenched frameworks designed to cultivate a thriving automotive manufacturing ecosystem. Tax exemptions, significant subsidies, and a streamlined bureaucratic process offer a fertile ground for foreign automakers to plant their roots without the customary fiscal burdens or red tape that can stifle growth and innovation.

Furthermore, these incentives are tailored to bolster long-term investments and collaborations, positioning Morocco not just as a manufacturing base but as a partner in automotive excellence. This proactive approach by the Moroccan government has been pivotal in transforming the national landscape into an attractive haven for automotive giants, fostering an environment where the auto industry can flourish unencumbered by the usual constraints faced in other regions.

Robust Infrastructure and Logistics Network

Morocco's standing as a beacon of automotive manufacturing efficiency is markedly reinforced by its state-of-the-art infrastructure and comprehensive logistics network. The country is equipped with cutting-edge ports, which are amongst the most modern in Africa, ensuring that both the import of raw materials and the export of finished automobiles are conducted with the utmost efficiency.

Its railways and roadways, developed with precision engineering, span the length and breadth of the nation, facilitating an unimpeded flow of goods within Morocco and beyond its borders. This intricate network of transport modalities is pivotal in ensuring that production lines are never halted due to logistical setbacks, thereby enabling automakers to adhere to stringent delivery schedules.

Beyond mere transportation, the logistical prowess of Morocco extends into the realm of supply chain management. With advanced systems in place, the tracking, handling, and distribution of automotive components are executed with laser precision, thereby minimising wastage and optimising resource allocation.

This robust infrastructure and logistics framework not only underpins the operational excellence of Morocco's automotive sector but also serves as a magnet for global automakers in search of reliability and efficiency in their manufacturing processes. It's this seamless integration of infrastructure and logistics that fortifies Morocco’s position as a formidable contender in the global automotive arena, setting a benchmark for others to follow.

Skilled Workforce and Training Programs

A pivotal element in Morocco's rise as the automotive hub of Africa is its investment in cultivating a skilled workforce, underpinned by an emphasis on specialised training programmes.

The nation has strategically developed a network of vocational training centres and partnerships with global automotive companies, aimed at equipping its labour force with the necessary expertise to meet the demanding standards of the industry.

Renault's Tangier plant.

These programmes are not only tailored to the intricacies of automobile manufacturing but are also designed to be dynamic, evolving in tandem with the latest advancements in automotive technology and processes. As a result, Morocco boasts a pool of highly skilled technicians, engineers and workers who bring a blend of technical acumen and practical experience to the production lines.

This commitment to workforce development ensures that the country's automotive sector is powered by individuals who are not just proficient in their roles but are also innovators capable of driving efficiency and excellence. The strategic foresight in fostering such a skilled workforce serves as a linchpin in Morocco's automotive industry, enabling it to not only compete but also set new standards on the global stage.

Competitive Production Costs and Quality Standards

In the landscape of global automobile manufacturing, Morocco distinguishes itself not only through its strategic initiatives but also via its competitive edge in production costs and adherence to high-quality standards. The convergence of lower labour expenses, advantageous energy rates and reduced operating costs positions

Morocco as an appealing hub for automakers aiming to enhance their operational efficiency. This financial attractiveness is complemented by a steadfast commitment to quality. Moroccan production facilities are governed by stringent quality control measures, ensuring that each vehicle not only aligns with but often surpasses international quality benchmarks.

This meticulous attention to cost-efficiency coupled with quality excellence underscores Morocco’s capability to produce vehicles that stand up to global scrutiny, thereby cementing its status as a formidable player in the automotive domain. The synthesis of cost competitiveness and quality assurance is pivotal in Morocco’s ascension as the automotive leader in Africa, showcasing a model of manufacturing excellence that resonates on a worldwide scale.

Images: supplied (Cover image Ulli/Pixabay)

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Solar tonneau cover from Worksport ready for production

US-based company Worksport is ready to move into full production following successful testing its solar tonneau cover solution for electric trucks (bakkies), able to generate 680 W of power depending on the weather and the size of the pickup bed.

Pilot production of the Solis solar tonneau cover is currently underway at Worksport’s advanced manufacturing facility in Western New York, utilising fully tooled, production-ready components. This facility is set to become the central hub for both the Alpha phase and full-scale production of the Solis system.

The initial release of Worksport’s Solar Truck Cover and COR portable energy system is scheduled for later this summer, targeting several high-growth, billion-dollar markets.

Cutting-Edge Technology

Proudly developed in North America, the Solis system is set to redefine performance and user experience in the portable energy sector, positioning Solis as a game-changer for truck owners and the broader recreational market.

Steven Rossi, CEO of Worksport, commented: “The COR & Solis system operates as a powerful clean-tech nano grid, generating a substantial amount of power each hour. Our tests reveal that the system can charge up to 45 iPhone 14 devices per hour, delivering clean energy directly from the sun.

“The Solis tonneau cover is an ideal solution for pickup truck owners as it allows users to power campsites, tools and even appliances, effectively transforming their trucks into versatile power stations.”

Revolutionising Portable Energy

The Solis system forms a key component of the Worksport COR ecosystem. Through the integration of Worksport Solis and MPPT, optimal energy harvesting and seamless cloud integration have been successfully tested, allowing for the exchange of information via embedded power converters.

The Solis and COR systems will be paired with a state-of-the-art mobile app, offering users real-time insights into power usage and generation. This innovative approach opens up significant market opportunities for the Worksport COR ecosystem.

Rafael Oliveira, Worksport's designated CTO, stated: “By harnessing smart technology, Worksport aims to track solar power generation across all Solis covers, making this data accessible to both users and investors. This capability presents numerous benefits, including potential carbon credits, continuous feedback for our R&D, and demonstrating the exceptional energy potential of our products globally.

“The prospect of having hundreds of thousands of Solis units on roads worldwide, creating the largest portable solar microgrid network, is very real. With live data collection, we can gather invaluable insights into solar irradiance, weather conditions, and solar efficiency in various locations – and monitor our eligibility for carbon credits.”

Images: Supplied

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Limited number Mercedes-Benz Maybach EQS allocated to South Africa

Limited numbers of the new ultra-luxurious Mercedes-Benz Maybach EQS have been allocated to South Africa – with no price tag announced just yet – and the car takes electric motoring to its highest reach yet.

When it comes to luxury vehicles, Mercedes-Benz has always been at the forefront of innovation and sophistication. The Maybach EQS is no exception, offering a unique blend of cutting-edge technology, unparalleled comfort and exquisite craftsmanship.

The exterior design shows off the chrome accents and iconic brand emblem that sits enthroned on the hood, standing out from the black panel with vertical, chrome-plated trim strips. The large black panel is smooth closed for the first time and the element for the radar sensors is fully integrated and no longer visible.

Mercedes-Benz development succeeded in using the material indium, which is permeable to radar beams, in the entire panel area. The wafer-thin, shiny silver material is covered with a black lacquer finish. This creates a unique high-gloss black appearance with an extraordinary depth effect.

Stepping into the Mercedes-Benz Maybach EQS is akin to entering a realm of unrivalled luxury. The meticulous attention to detail is evident in every stitch of the lush, premium upholstery and in the polished finish of each surface. The cabin, a sanctuary of comfort, is designed with the discerning passenger in mind, offering expansive space and ergonomically designed seats that provide both support and unparalleled comfort during travel.

“The Mercedes-Maybach EQS SUV is our first all-electric, full-size luxury SUV and a testament to our vision. The interior is an emotional and stylish statement, a blend of luxury and technology in the most harmonious sense. The immense power offered by the latest electric technology ensures an effortless driving experience.

Together with the innovative, progressive SUV proportions, we are completely redefining the SUV luxury of the future not just globally but locally as well,” says Mark Raine Co-CEO Mercedes-Benz South Africa.

The central display starts with the familiar home screen and the so-called 'zero layer’. In this basic setting, the navigation map dominates. The driver can carry out 80% of the most common interactions directly without changing the application. The system reacts situationally and is personalised with intelligent suggestions and forward-looking offers.

The rear passengers experience the same extensive range of infotainment and comfort features with two 11,6-inch displays on the backrests of the front seats. With the standard MBUX High-End Rear Seat Entertainment, content can be shared quickly and easily on the various displays. It is also possible to select and modify the navigation destinations from the rear seats. The standard equipment also includes the MBUX rear tablet, which can also be used outside the vehicle, and the MBUX Interior Assist.

Ambient lighting casts a gentle glow, allowing passengers to customise their environment to suit their mood or preferences, further enhancing the sensory experience. Additionally, the vehicle's noise insulation techniques create a serene, whisper-quiet interior, making it the perfect retreat from the bustling world outside.

Craftsmanship in the Maybach EQS is not merely about luxury, but about creating an intimate, personalised space that speaks volumes of its dedication to excellence and passenger comfort.

Beyond safety, the EQS features an advanced air filtration system, ensuring the cabin air remains pure and refreshing, irrespective of external conditions. The vehicle's commitment to sustainability is further underscored by its energy-efficient components and regenerative braking system, which optimises battery life and extends range.

The battery has a usable 118 kWh with a stated range of 490 kilometres.

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Shifting trends in the South African car market

The preferences for motor vehicle segments and body shapes in South Africa are undergoing significant changes, potentially marking a permanent shift. As the market grapples with new realities, even long-standing favourite brands are facing challenges.

Over the past 15 years, South Africa’s motor retail industry has been shaped by slow economic growth, inadequate infrastructure, political instability, and a series of global shocks.

"These include the 2008 financial crisis and the Covid-19 pandemic in 2020, both of which had severe economic and social impacts. More recently, Russia’s invasion of Ukraine and conflicts in the Middle East have heightened global political tensions and hindered economic activity," says Paul Marshall, managing director of Lightstone Auto which analysed the data and produced the graphs.

Globally, car sales rose to approximately 75,3 million in 2023, up from around 67,3 million in 2022. This growth reversed the declining trend seen during the economic slowdown of 2020 and 2021. Supply chain disruptions caused by Covid-19 and geopolitical conflicts led to shortages in the automotive semiconductor industry. Despite these challenges, 2023 sales exceeded pre-pandemic levels and are expected to continue rising through 2024, according to Statista.

"Both global and local factors influence consumer behaviour in South Africa, and the outlook for sales is less optimistic compared to other international markets," adds Marshall.

In 2009, South Africa recorded 393 405 new vehicle sales, the second-lowest in the past 15 years, just above the 389 205 sales in 2020 when Covid-19 struck.

Although the market recovered post-2009, reaching more than 600 000 annual sales between 2012 and 2015, consumer demand weakened before the pandemic, dropping to 536 604 in 2019. Currently, sales have rebounded to similar levels (531 787 in 2023), with further growth dependent on an improving domestic economy.

There are indications of potential interest rate relief from the South African Reserve Bank this year, although government policies may shift following the 2024 election results. Until then, consumers are likely to remain under financial pressure and continue to opt for more affordable vehicles.

Market Dynamics: Brands, Body Shapes, and Segments

Economic challenges may dampen consumer spending, but lifestyle changes and resilience are driving new purchasing trends in South Africa’s car market.

Toyota and Volkswagen remain the top brands, but the competition is heating up. Suzuki surged to third place in 2022, overtaking Hyundai, which had moved to third just a year earlier. Renault and Kia have also entered the top 10, with Renault in seventh place since 2014 and Kia in eighth since 2016. New entrants like Chery and Haval, offering more affordable options from China and South Korea, are also making their mark.

"Interestingly, BMW and Mercedes-Benz have fallen out of the top 10, and as the quality of more affordable vehicles continues to improve, these shifts could become permanent," he says.

Preferences for body shapes are also evolving. The Crossover/SUV segment, which accounted for about 13% of the market in 2009, has steadily grown to become the top choice by 2020, reaching 35% of the market in 2023.

This trend reflects consumers’ concerns about road safety and a preference for more robust vehicles that offer better protection and navigation on pothole-ridden roads. The Double Cab One-ton Pick-up has also seen consistent growth over the past 15 years, becoming the third top seller in 2023, further supporting this observation.

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Ford Racing - part of its South African centenary heritag

https://www.youtube.com/watch?v=EDjSktGez-4
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Africa Automotive: VW Group Africa signs new Egypt deal

Volkswagen Group Africa is expanding its partnership with the Egyptian government and have signed a new agreement to look into building new Body Shop and Assembly Line facilities.

Following up on their progress from an agreement in November 2023, Volkswagen Group Africa and the Egyptian government have signed a fresh deal. This previous agreement was to explore setting up a joint automotive painting facility in the East Port Said Industrial Zone.

This new strategic partnership will focus on studying the feasibility of constructing and using new Body Shop and Assembly Line buildings in the same zone.

The agreement was signed by several key figures, including the Chairman of the General Authority for the Suez Canal Economic Zone, Waleid Gamal Eldien; the CEO of the Sovereign Fund of Egypt, Ayman Soliman; Vice President of the East Port-Said Development Company, Dr Ahmed Fikry; and the Chairperson and Managing Director of Volkswagen Group Africa, Martina Biene. The signing ceremony, held during the Egypt-EU Investment Conference in Cairo on 29-30 June 2024, was attended by Egypt’s Prime Minister, Dr Mostafa Madbouly, along with several other ministers and the European Commissioner for Trade, Valdis Dombrovskis.

The earlier agreement set the stage for deepening the localisation of the automotive industry in Egypt. It highlighted the Egyptian government's commitment to boosting its automotive sector. In June 2022, the Egyptian government launched the Automotive Industry Development Programme (AIDP) to increase local value addition, ramp up vehicle production, attract investment, and improve emission standards in the automotive industry.

The Egyptian government plans to create a Special Purpose Vehicle (SPV) to build the Body Shop and Assembly Line facilities. Volkswagen Group Africa has shown interest in using these facilities to assemble vehicles for the Egyptian market, depending on the feasibility study's positive outcome.

Martina Biene commented: “This new strategic cooperation with the Egyptian government provides Volkswagen Group Africa with a low-investment model, shifting the focus from capital expenses to operational expenses. It also allows us to move forward with our long-term plans to establish a presence in Egypt. We're encouraged by the Egyptian government’s innovative approach to make this project viable, and we’re fully committed to working together to make it happen.”

https://bit.ly/4eJ3Ub8