German luxury carmaker, Mercedes-Benz Cars plans to start a new assembly plant in Egypt, with the passenger car facility to be built by a local business partner.
“Egypt is an attractive and competitive location for production and supporting logistics. With the planned local assembly we are confident to be able to expand our market position. Furthermore, with our broad-based product portfolio, our electric initiative as well as our expertise in respect of modern mobility concepts, we are ready to support the Egyptian authorities in related projects”, said Markus Schafer, member of the Divisional Board of Mercedes-Benz Cars, Production and Supply Chain.
The company says in order to optimally respond to market and sales potential, the framework conditions in all markets and regions are constantly monitored and the market strategy is aligned accordingly.
Mercedes-Benz Cars says the planned localisation effort is being developed in close collaboration with the Egyptian government and was further concretised in recent successful discussions between Markus Schafer and the President of Arab Republic of Egypt Abdel Fattah El-Sisi in Cairo and with the prime minister, Mostafa Kemal Madbouly, in Berlin.
“We welcome the decision of Mercedes-Benz to resume manufacturing and assembly of cars in Egypt, a step that reflects the improvement of the investment environment and the performance of business in Egypt, in the light of the implementation of the comprehensive economic reform program as well as the openness of Egypt to cooperate with the German company within the framework of its policies to develop the automotive industry in its various categories”, said Abdel Fattah El-Sisi.
There have been talks on important state infrastructure projects with the Egyptian government. With regard to the new capital in Egypt and the planned new 'smart cities', Daimler says it has offered its expertise in modern mobility concepts, electro-mobility and electric cars as well as autonomous driving, with the detailed agreements not yet concluded.
At present Daimler has its own import and sales organisation, a central spare parts warehouse and authorised retailers and workshops in Cairo, Giza, Alexandria and Hurghada, and contributes to around 1,000 direct and indirect jobs in Egypt.