Mercedes Carmaker to withdraw from Joint Car Assembly Venture in Egypt

German carmaker Daimler is to withdraw from Egyptian joint venture EGA, a company spokeswoman said Friday, DPA reported.

Under the joint venture, Daimler, the maker of Mercedes cars, had assembled vehicles delivered in stripped-down form in order to avoid high Egyptian import duties.

The assembled vehicles included the S, C and E ranges and the GLK SUV. Last year it began importing complete cars into Egypt, selling them through its own dealers.

Focus magazine said its decision was based on the fact that import duties are expected to decline further in the future. EGA was looking at expanding to assemble other makes of car, the spokeswoman said.

Until recently, Egypt imposed duties on imported cars of up to 100 per cent.

Daimler holds a 26-per-ecnt stake in EGA, which it plans to withdraw from next month.

In 2014, it sold just 4,255 vehicles in Egypt, according to the original report in the weekly Focus magazine.

Comments
Loading...