Auto component manufacturers threats raise pressure to get Automotive Directive out

A number of auto components manufacturers are considering adding production lines for components for other industries or switching gears entirely due to falling car sales and the resulting shrinkage in the number of orders for auto parts, said head of the Egyptian Automotive Manufacturers Association Ali Tawfik. Those who have the ability to switch up production are considering producing parts for home appliances and infrastructure projects, he tells Al Mal. The warnings should give added impetus to the Trade and Industry Ministry to pass the Automotive Directive, which provides incentives to auto assemblers and component manufacturers to move up the value-chain to manufacturing to better compete against cheaper imports from the EU and other countries. The ministry has until 1 January before customs on EU-assembled cars reach zero.