Leading auto giant Mercedes-Benz Cars said its regional unit has signed up Egyptian German Automotive Company (EGA) as its new manufacturing partner for local assembly of its passenger cars in the country.
The German group had in June inked a deal with Amr Nassar, Egypt's Minister of Trade and Industry
for setting up the assembly plant. The signing ceremony was held at its office in Sindelfingen, Germany in the presence of Egyptian Prime Minister Mostafa Madbouly.
This new milestone is set to further improve the market position of Mercedes-Benz Cars in Egypt.
The local assembly contract was awarded to EGA after a thorough assessment and selection process of other local candidates, performed according to Mercedes-Benz standards and Production System requirements, stated the company.
Adding to the brand’s pioneering market position, this new agreement will prove to be another valuable addition to the local Mercedes-Benz Cars product line up, further introducing SUV models that were not introduced before in Egypt.
Mercedes-Benz Cars sees Egypt as an important market for passenger cars and commercial vehicles for many years. In the long term, Mercedes-Benz Cars will create various potential for the country and the region through strategic cooperation for different mobility topics.
Thomas Zorn, CEO and President of Mercedes-Benz Egypt said: "As one of the leading premium brands in the Egyptian automotive market, we reaffirm our commitment for the future, in terms of workforce training and providing new employment opportunities."
"With the new car assembly operation, Mercedes-Benz Cars will trigger new employment and contribute to better training opportunities with the planned training center," he noted.
"The upcoming local assembly will allow us to offer our customers an even wider range of attractive product portfolio according to their individual needs, further providing them with the best possible products, services and experience," he added.
The planned assembly process will further satisfy the local market demand, where Mercedes-Benz Egypt will focus on assembling SUVs, a very popular product segment within the local automotive sector.
The setup of the local assembly process is planned to begin very soon and the first car is expected to roll off the assembly line in the second half of 2020.
In view of the long-term market potential, further investments are also conceivable, for example expansion of our dealer network nationwide, a logistical hub in the Suez Canal Special Economic Zone and a training centre.
With the planned car assembly operation in Egypt, Mercedes-Benz Cars is supporting Egypt as an industrial location, stated Zorn.
Already, Mercedes-Benz is securing more than 1,000 direct and indirect jobs in Egypt with its own import and sales organization, a central spare parts warehouse and numerous authorized retailers and workshops in Cairo, Gizeh, Alexandria and Hurghada, he added.-TradeArabia News Service