Egypt Signs Deal to Assemble Mercedes-Benz Cars

Trade and Industry Minister Amr Nassar signed on Monday an MoU with Mercedes-Benz to resume the assembly of passenger cars in Egypt after a four-year hiatus.

Nassar signed the MoU during a visit to Stuttgart, Germany, with Prime Minister Moustafa Madbouly, as Mercedes-Benz will set up a plant in Suez Canal Economic Zone ''SCZone''.

Madbouly noted that the agreement represents a quantum leap in Egypt's auto industry, asserting that Mercedes-Benz hub will not just serve Egypt, but also the whole region.

Mercedes-Benz

In addition, the project is part of the state's strategy to support the intelligent transportation system and electricity-powered means of public transport.

The agreement would allow the company to structure production network even more flexibly and efficiently and respond even better to the needs of customers, according to Jörg Burzer, an executive board member at Mercedes-Benz.

Mercedes-Benz statement reported that it will assemble with a local partner, but does not name the partner or get into specifics on ticket size of the investment or how many cars it could produce. In addition the move will improve the company’s market position and boost the Egyptian economy.

Noteworthy, the signing comes days after dispute resolution committee ruled in favor of an importer of Mercedes-Benz vehicles worth EGP 700M dispute with Egypt’s Customs Authority.