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Volkswagen seems keen on proposed shared auto production facility: German carmaker Volkswagen is interested in helping develop a shared production facility in the East Port Said Industrial Zone, Volkswagen Group Africa Chairperson and Managing Director Martina Biene told Asharq Business.
Remember: The Madbouly government and Volkswagen signed an agreement in November to conduct feasibility studies for the establishment of the planned East Port Said Automotive Zone (EPAZ), for which Volkswagen was set to provide the government with technical assistance as it works on the zone’s feasibility study. Volkswagen’s assistance to the project was driven by the firm’s interest in upping its presence in the country and jumping on board with efforts to localize the industry under the Automotive Industry Development Program.
An automotive industry first: “What Egypt and East Port Said is trying to build is something unique and something we have not heard of in the automotive industry before,” Biene added. The shared production facility will be used by different original equipment manufacturers (OEMs), Biene said, explaining that they are “interested in sharing in assembly so that individual manufacturers only would have to set up their individual bodyshops.” As an example, Beine pointed to the possibility of different car manufacturers sharing a vehicle painting complex, “which reduces the capex side of the investments a lot and moves it into opex.”
The more the merrier: “The project really becomes interesting if there are other OEM partners. So, we would welcome all other manufacturing partners that are interested in looking at this experiment.”
A final agreement could be announced in 2025: If the project proves feasible, Biene hopes to present a final agreement by next year, which would then be followed by the construction of the facilities, she said.
And another? The government is in “advanced talks” with a major non-Chinese vehicle manufacturer to assemble its cars locally, Trade Minister Ahmed Samir told Asharq Business.
