{"id":548319,"date":"2022-08-03T04:00:11","date_gmt":"2022-08-03T04:00:11","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/08\/03\/on-the-airwaves-last-night-the-crisis-facing-the-automotive-industry-the-us-china-row-over-taiwan\/"},"modified":"2022-08-03T04:00:11","modified_gmt":"2022-08-03T04:00:11","slug":"on-the-airwaves-last-night-the-crisis-facing-the-automotive-industry-the-us-china-row-over-taiwan","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/08\/03\/on-the-airwaves-last-night-the-crisis-facing-the-automotive-industry-the-us-china-row-over-taiwan\/","title":{"rendered":"On the airwaves last night: The crisis facing the automotive industry + the US-China row over Taiwan"},"content":{"rendered":"

Divergent views on the causes of the current issues facing the Egyptian auto <\/strong>industry <\/strong>were on display on Al Hayah Al Youm last night, when Mohamed Sherdy spoke to YouTuber Essam Ghanayem<\/a> and head of the car traders\u2019 federation Osama Abou El Magd about the crisis in the sector (watch, runtime: 28:48<\/a>). In a sometimes heated debate, the two car connoisseurs differed on whether the sources of the problems are at home \u2014 overpricing and import restrictions \u2014 or abroad, with global inflation and supply chain issues posing problems.<\/p>\n

Removing restrictions on imports of used cars could offer the industry some reprieve<\/strong>, Ghanayem suggested \u2014 a view that would be hotly contested by licensed distributors<\/strong>, particularly those that have invested 100s of mns in assembly facilities. Ghanayem didn\u2019t explain how the idea would make it possible for banks to somehow find FX for importers who want to bring in used vehicles. Another short-term solution would be removing restrictions on Egyptian expats abroad to ship their cars into the country \u2014 a restriction that sends car demand surging, especially during the peak summer season when expats return home, Ghanayem said, adding that this issue could compound the current car shortage in the country.<\/p>\n

Ask a distributor and they\u2019ll tell you the problem is simple: They can get letters of credit open for imports of spare parts and tires \u2014 but cars are another story. <\/strong>L\/Cs for fully assembled vehicles (completely built up, or CBU units, in industry-speak) are just about impossible to obtain. Most are having more success with L\/Cs for assembly kits (or completely knocked-down \u2014 CKD to insiders), albeit at much lower volumes than they want. Distributors have comparatively better access to L\/Cs for spare parts and tire imports.<\/p>\n

Why CKD and no CBU? <\/strong>CKD assembly lines employ thousands of people. Cars that are imported fully assembled don\u2019t support nearly as many jobs.<\/p>\n

Background:<\/strong> Car sales have been falling<\/a> on a monthly basis as the automotive sector is being buffeted by a multitude of headwinds, including a lack of financing for imports, rising inflation, component shortages and the EGP devaluation in March.<\/p>\n

President Abdel Fattah El Sisi wants the government to hurry up developing the textiles <\/strong>industry<\/strong> and focus on getting the world\u2019s largest spinning and weaving factory<\/a> in Mahalla Al Kobra up and running by next year. This came during a meeting with Prime Minister Moustafa Madbouly and Public Enterprises Minister Hisham Tawfik yesterday, which got coverage on Masaa DMC (watch, runtime: 6:25<\/a>) and Al Hayah Al Youm (watch, runtime: 2:35<\/a>).<\/p>\n

The talking heads were also concerned about the possibility of a global crisis erupting <\/strong>between the US and China <\/strong>due to US House Speaker Nancy Pelosi\u2019s visit to Taiwan, which we have more on in this morning\u2019s What We\u2019re Tracking Today section, above. Sada El Balad (watch, runtime: 11:38<\/a>), Ala Mas\u2019ouleety (watch, runtime: 4:42<\/a>) and Masaa DMC (watch, runtime: 22:26<\/a>) all covered the developing story and its potential ramifications.<\/p>\n","protected":false},"excerpt":{"rendered":"

Divergent views on the causes of the current issues facing the Egyptian auto industry were on display on Al Hayah Al Youm last night, when Mohamed Sherdy spoke to YouTuber Essam Ghanayem and head of the car traders\u2019 federation Osama Abou El Magd about the crisis in the sector (watch, runtime: 28:48). In a sometimes […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7232],"tags":[96,144,116,168,72,106,127,2205,2080,117],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-548319","post","type-post","status-publish","format-standard","hentry","category-last-nights-talk-shows","tag-abdel-fattah-el-sisi","tag-automotive","tag-china","tag-diplomacy","tag-enterpriseam","tag-last-nights-talk-shows","tag-politics","tag-taiwan","tag-textiles","tag-us","wpautop","entry"],"acf":{"mongo_id":"c41a0f0c-36cf-4ba1-9b92-6fe83153318f","is_powered_by":true,"story_type":"1","photo_url":"","photo_position":"above","related_issue":[548302],"teaser":"","voice_url":""},"yoast_head":"\nOn the airwaves last night: The crisis facing the automotive industry + the US-China row over Taiwan - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2022\/08\/03\/on-the-airwaves-last-night-the-crisis-facing-the-automotive-industry-the-us-china-row-over-taiwan\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"On the airwaves last night: The crisis facing the automotive industry + the US-China row over Taiwan\" \/>\n<meta property=\"og:description\" content=\"Divergent views on the causes of the current issues facing the Egyptian auto industry were on display on Al Hayah Al Youm last night, when Mohamed Sherdy spoke to YouTuber Essam Ghanayem and head of the car traders\u2019 federation Osama Abou El Magd about the crisis in the sector (watch, runtime: 28:48). 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Among the handful of business-relevant stories: Egypt\u2019s balance of payments report carried with it some \u201ccheerful\u201d economic news, El Hekaya\u2019s Amr Adib said in reference to the central bank report (watch, runtime: 7:38). Egypt was a net oil exporter for the first\u2026","rel":"","context":"In "Enterprise+: Last Night\u2019s Talk Shows"","block_context":{"text":"Enterprise+: Last Night\u2019s Talk Shows","link":"https:\/\/enterpriseam.com\/egypt\/category\/enterprise-last-nights-talk-shows\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":655310,"url":"https:\/\/enterpriseam.com\/egypt\/2024\/11\/17\/el-nasr-automotive-restarting-production-put-the-countrys-efforts-to-localize-the-auto-industry-in-the-limelight\/","url_meta":{"origin":548319,"position":2},"title":"El Nasr Automotive restarting production put the country's efforts to localize the auto industry in the limelight","author":"enterpriseam admin","date":"17 November 2024","format":false,"excerpt":"The firm has officially restarted operations after a 15-year hiatus","rel":"","context":"In "LAST NIGHT\u2019S TALK SHOWS"","block_context":{"text":"LAST NIGHT\u2019S TALK SHOWS","link":"https:\/\/enterpriseam.com\/egypt\/category\/last-nights-talk-shows\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2024\/11\/1504.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":600629,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/02\/05\/imf-signs-off-on-egypts-fifth-usd-2-bn-tranche-parliament-discusses-constitutional-amendments\/","url_meta":{"origin":548319,"position":3},"title":"IMF signs off on Egypt\u2019s fifth USD 2 bn tranche, parliament discusses constitutional amendments","author":"enterpriseam admin","date":"5 February 2019","format":false,"excerpt":"The airwaves gave us a mixed bag of nuts last night, with the talking heads touching on several topics without offering much by way of analysis. The IMF signing off on the disbursal of Egypt\u2019s fifth USD 2 bn loan tranche (the details of which we have in Speed Round,\u2026","rel":"","context":"In "Enterprise+: Last Night\u2019s Talk Shows"","block_context":{"text":"Enterprise+: Last Night\u2019s Talk Shows","link":"https:\/\/enterpriseam.com\/egypt\/category\/enterprise-last-nights-talk-shows\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":621646,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/11\/14\/last-nights-talk-shows-conference-on-libya-in-palermo-leads-conversation-on-the-airwaves\/","url_meta":{"origin":548319,"position":4},"title":"Last night\u2019s talk shows: Conference on Libya in Palermo leads conversation on the airwaves","author":"enterpriseam admin","date":"14 November 2018","format":false,"excerpt":"On another night of bland miscellany, the conference on Libya in Palermo continued to lead the conversation on the airwaves. The conference was long overdue and the international community should have directed more attention to the crisis in Libya as it was unfolding, former Foreign Minister Mohamed Orabi tol Al\u2026","rel":"","context":"In "Enterprise+: Last Night\u2019s Talk Shows"","block_context":{"text":"Enterprise+: Last Night\u2019s Talk Shows","link":"https:\/\/enterpriseam.com\/egypt\/category\/enterprise-last-nights-talk-shows\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":600993,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/02\/17\/munich-security-conference-in-the-limelight-on-egypts-talk-shows\/","url_meta":{"origin":548319,"position":5},"title":"Munich Security Conference in the limelight on Egypt\u2019s talk shows","author":"enterpriseam admin","date":"17 February 2019","format":false,"excerpt":"The Munich Security Conference was the highlight of last night\u2019s talk shows, with Hona Al Asema\u2019s Lama Gebril (watch, runtime: 03:44 and runtime: 12:01) and Masaa DMC\u2019s Eman El Hosary recapping the key takeaways from President Abdel Fattah El Sisi\u2019s speech (watch, runtime: 01:59). El Hekaya\u2019s Amr Adib was more\u2026","rel":"","context":"In "Enterprise+: Last Night\u2019s Talk Shows"","block_context":{"text":"Enterprise+: Last Night\u2019s Talk Shows","link":"https:\/\/enterpriseam.com\/egypt\/category\/enterprise-last-nights-talk-shows\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/548319","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=548319"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/548319\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/548302"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=548319"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=548319"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=548319"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=548319"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=548319"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}