{"id":630283,"date":"2018-04-17T03:54:03","date_gmt":"2018-04-17T03:54:03","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2018\/04\/17\/future-investments-in-egypt-from-nissan-toyota-ride-on-the-automotive-directive\/"},"modified":"2018-04-17T03:54:03","modified_gmt":"2018-04-17T03:54:03","slug":"future-investments-in-egypt-from-nissan-toyota-ride-on-the-automotive-directive","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2018\/04\/17\/future-investments-in-egypt-from-nissan-toyota-ride-on-the-automotive-directive\/","title":{"rendered":"Future investments in Egypt from Nissan, Toyota ride on the Automotive Directive"},"content":{"rendered":"

<\/a> Future investments in Egypt from Nissan, Toyota ride on the Automotive Directive:<\/strong> Japanese automakers Nissan and Toyota are waiting on the Automotive Directive to decide on how to expand their investments in Egypt, economic counselor at the Japanese embassy in Cairo Hiro Ichiba said<\/a>. The two companies would invest more here are both considering expanding assembly operations, but cannot take decisions without knowing the government\u2019s policy direction, according to Ichiba. He did not provide further details on the expected size or nature of the companies\u2019 new investments.<\/p>\n

A number of automakers have recently announced plans to launch or expand production in Egypt in anticipation of the Automotive Directive<\/strong>, which is expected to be issued sometime in 2018. Last month, we learned that Volkswagen has reportedly already tapped three Egyptian manufacturers<\/a> to become part of its global parts supply chain to serve demand at assembly facilities across the region. French multinational group Renault is also said to be in talks with potential local partners over a similar-style agreement, while Spanish automaker SEAT is expected to begin assembly operations<\/a> in Egypt by 2020 through its local agent Kayan.<\/p>\n

What is the automotive directive?<\/strong> It\u2019s a proposal that would level the playing field for domestic assemblers against what they claim is an unfair trade advantage that favors imports from the EU, Turkey and Morocco. Under the proposal, Egypt would maintain a 10% customs duty on non-European car imports \u2014 and impose a 30% tax on all imports including the imports of kits for local assembly. Domestic assemblers that meet local content, volume or export requirements would then get tax rebates or tax exemptions<\/p>\n

Where does the directive stand? <\/strong>Last we heard, the proposed bill was still with a Trade Ministry-appointed German consultancy, which has had it since before the glaciers of the last ice age melted. We have eight months before EU car imports fall to zero.<\/p>\n

The domestic automotive industry is running out of time. We\u2019re about 258 days away from 1 January 2019.<\/strong> That\u2019s when customs duties on European Union-assembled cars fall to zero, making fully assembled imports more cost competitive than those assembled in Egypt. The government has a choice to make: Does it want to move ahead with the automotive directive and save skilled jobs and investments worth bns? Or does it want to make nice with Germany, which has led the charge against the automotive directive to promote the interests of its own domestic auto industry? The cost of making nice: Factory shutdowns on 1 January 2019.<\/p>\n","protected":false},"excerpt":{"rendered":"

Future investments in Egypt from Nissan, Toyota ride on the Automotive Directive: Japanese automakers Nissan and Toyota are waiting on the Automotive Directive to decide on how to expand their investments in Egypt, economic counselor at the Japanese embassy in Cairo Hiro Ichiba said. 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The Trade and Industry Ministry plans to hold a meeting today with a number of auto companies to discuss an order issued by minister Tarek Kabil last month on local content that is widely considered to be a forerunner to the Automotive\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":599186,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/06\/20\/toyota-snubs-saudi-arabia\/","url_meta":{"origin":630283,"position":1},"title":"Toyota snubs Saudi Arabia","author":"enterpriseam admin","date":"20 June 2019","format":false,"excerpt":"Toyota snubs Saudi Arabia: Toyota is reportedly backing out of plans to build a car plant in Saudi Arabia, sources close to the matter tell Reuters. \u201cNobody would say \u2018No, full stop\u2019 ... but they politely conveyed they\u2019re not interested,\u201d one source is quoted as having said. Saudi Arabia signed\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/6\/1735.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":622169,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/11\/28\/japanese-companies-want-clarity-on-govt-policy-toward-automotive-assembly-industry-before-committing-to-new-investments\/","url_meta":{"origin":630283,"position":2},"title":"Japanese companies want clarity on gov\u2019t policy toward automotive assembly industry before committing to new investments","author":"enterpriseam admin","date":"28 November 2018","format":false,"excerpt":"Japanese companies want clarity on gov\u2019t policy toward automotive assembly industry before committing to new investments: Japanese automotive companies are interested in investing more in Egypt, but are waiting for clarity on government policy, Japanese Ambassador to Egypt Masaki Noke said. \u201cIf you have a trade agreement, you can import\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":564365,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/08\/26\/gm-eyes-further-egypt-investments-as-govt-incentives-auto-exports\/","url_meta":{"origin":630283,"position":3},"title":"GM eyes further Egypt investments as gov\u2019t incentives auto exports","author":"enterpriseam admin","date":"26 August 2021","format":false,"excerpt":"General Motors could be looking to invest more in Egypt. That\u2019s the key takeaway from GM MEA President and Managing Director Luay Al Shurafa\u2019s sitdown earlier today with Trade and Industry Minister Nevine Gamea. The two discussed how GM\u2019s expansion plans might dovetail with the Madbouly government\u2019s drive to grow\u2026","rel":"","context":"In "SPEED ROUND: INVESTMENT WATCH"","block_context":{"text":"SPEED ROUND: INVESTMENT WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round-investment-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":647079,"url":"https:\/\/enterpriseam.com\/egypt\/2017\/05\/02\/automotive-directive-violates-egypts-european-ftas-surkos\/","url_meta":{"origin":630283,"position":4},"title":"Automotive directive violates Egypt\u2019s European FTAs -Surko\u0161","author":"enterpriseam admin","date":"2 May 2017","format":false,"excerpt":"EU delegation brassed-off about \u2018automotive directive\u2019: The proposed automotive directive, which given cash incentives to Egyptian car assemblers who go further up value chain into manufacturing, would violate the terms of Egypt\u2019s free trade agreement the European Union, EU Mission Chief to Egypt Ivan Surko\u0161 told reporters on Sunday, Al\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":604408,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/12\/03\/trade-minister-downplays-automotive-directive-says-talks-are-ongoing-with-unnamed-global-car-manufacturers-on-egypt-investments\/","url_meta":{"origin":630283,"position":5},"title":"Trade minister downplays \u2018automotive directive,\u2019 says talks are ongoing with unnamed global car manufacturers on Egypt investments","author":"enterpriseam admin","date":"3 December 2018","format":false,"excerpt":"Trade Minister: Please stop asking about the \u201cautomotive directive.\u201d Trade and Industry Minister Amr Nassar threw cold water on years spent crafting the \u201cautomotive directive\u201d that would have given incentives to local assemblers to move further up the value chain into manufacturing in return for a measure of protection against\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/2\/31.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/630283","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=630283"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/630283\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/630271"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=630283"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=630283"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=630283"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=630283"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=630283"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}