Egypt's FEC, TRAIN partner to support food exporters    Spot Gold, futures slips on Thursday, July 17th    Egypt's EHA, Huawei discuss enhanced digital health    Egypt expresses condolences to Iraq over fire tragedy    Egypt, Oman discuss environmental cooperation    Egypt's Environment Minister attends AMCEN conference in Nairobi    At London 'Egypt Day', Finance Minister outlines pro-investment policies    Sukari Gold Mine showcases successful public–private partnership: Minister of Petroleum    Egypt's FRA chief vows to reform business environment to boost investor confidence    Egyptian, Belarusian officials discuss drug registration, market access    Syria says it will defend its territory after Israeli strikes in Suwayda    Pakistan names Qatari royal as brand ambassador after 'Killer Mountain' climb    Health Ministry denies claims of meningitis-related deaths among siblings    Sri Lanka's expat remittances up in June '25    EU–US trade talks enter 'decisive phase', German politician says    Egypt's Health Min. discusses drug localisation with Sandoz    Needle-spiking attacks in France prompt government warning, public fear    Foreign, housing ministers discuss Egypt's role in African development push    Korea Culture Week in Egypt to blend K-Pop with traditional arts    Egypt, France FMs review Gaza ceasefire efforts, reconstruction    CIB finances Giza Pyramids Sound and Light Show redevelopment with EGP 963m loan    Greco-Roman tombs with hieroglyphic inscriptions discovered in Aswan    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    Egypt's Democratic Generation Party Evaluates 84 Candidates Ahead of Parliamentary Vote    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Cabinet approves establishment of national medical tourism council to boost healthcare sector    Egypt's PM follows up on Julius Nyerere dam project in Tanzania    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Ministries of Industry, Finance need balance between Egyptian, European exporters: GB Auto SAE CEO
Published in Daily News Egypt on 06 - 04 - 2015

While participating in the event his company held to celebrate cooperation with Cisco Systems, Raouf Ghabbour, CEO of Ghabbour Auto, talked to Daily News Egypt. The event was entitled "When technology meets automotive industry".
What are your demands regarding the strategy of automotive industry?
I demand that both the Ministries of Industry and Finance urgently create the balance between the privileges offered to Egyptian exporters, when entering the European market and the privileges offered to the European exporters when entering the Egyptian market. Egyptian exporters obtain privileges amounting to 10% customs exemption, while European car dealers benefit from exemptions reaching 135% for big cars and 40% for small cars.
Did you liaise with any governmental body in this regard?
We talked to both the Ministries of Industry and Foreign Trade and Finance. The government will take the decision that serves the Egyptian economy [best], especially in light of its concern in this period regarding domestic industry and giving it the priority over foreign industry, even if its price is higher with more than 15%. I warn against not saving the local industry from diminishing, in order to maintain imported cars. Neglecting the present industry will eliminate it, or transform it to an assembly industry instead of an industry that competes abroad and acquires the local market.
What is your comment on the absence of the automotive industry from the Economic Summit?
It is not possible for the government to change its perception towards a specific industry and propose it to investors before the presence of legislative change, which protects workers of this industry. Moreover, no investor would get involved in an industry in any country under the absence of legislations determining his rights and obligations.
Will car prices go up in the next period?
It is expected for car prices to rise next period, under the value decrease of the Egyptian pound against the US dollar. Moreover, workers in the sector cannot completely bear the increase of taxes and customs for the consumer. The tax system was in the beginning of the year while the dollar exchange rate was at EGP 7.12, but it now amounts to EGP 7.63. This must be reflected on the prices in order to reach balance in revenues for workers in the sector.
What about Mazda's sales lately?
Since the start of the year, sales exceeded expectations and, in order to cover its sales, a service centre was established. Also the company expanded its activities to include after-sale services and it is investigating how to increase its services in the coming period.
Could you tell us about the expansion strategies?
We plan to expand in the national market in the next period. We started establishing a tyre factory and a Toktok factory, as well as a motorcycle factory. We also started building eight centres for customer service concerning passenger cars. The centres are located in Aswan, Luxor, Sohag, Minya, Beni Suef, Marsa Matruh, Sharqeya, and Damietta, aside from five new centres concerning trucks. Parallel to the national market, we are planning to expand in the UAE by establishing a branch there similar to the other international branches. Moreover, we are investigating some new agencies concerning the local market.
How far does the political situation affect national and international investments?
Egypt is a big country, so the political situation did not affect negatively the company's investments because no matter how bad the situation is, it could not affect the needs of 90 million citizens who look for all car types, while for investors, the national market is considered a great opportunity which can include all goods in huge amounts. We are present in five Arab countries: Egypt, Jordan, Iraq, Algeria and Libya. Despite the unstable situation in Libya and Iraq, we have no intention to exit their market now for two reasons: the company's policies are against exiting any market; the location of the company in these countries does not cause any threat against its employees. Moreover in case of emergency, the company is totally ready to relocate its employees in another country where they can connect with their old locations via technological means, like Dubai and Jordan, wherever they are.
Do you have intention to invest in reviving El-Nasr Automotive Manufacturing Company?
We do not have intentions to take part in this, and this step is not included in our strategy. If we wanted to open a new factory for automotives to expert, we would not choose El-Nasr Automotive Manufacturing Company. The best choice would be to manufacture cars inside the Suez Canal Axis area, because production in the area would be better to facilitate exports to Africa and Europe, in addition to providing the transport costs, and we would only take care of the freight costs. It is of benefit to the government to not revive El-Nasr, instead of wasting money in an attempt to re-operate it. El-Nasr is located in Wadi Hof, Helwan, on a land area of 1m sqm, and the price of land is roughly EGP 2,000 per metre.
What about the data centre in Qaliubiya? What is the aim behind it?
We are currently working to finalise the data centre in Qaliyub, which will be the same as the data centre in Cairo. The company started building the centre a year and a half ago, and work was going slow in the second half of 2014. The centre will be ready by the end of this year. The purpose of building it is that the company can cover 100% of the services in the whole country, as well as integrating with the centre in Cairo. If there was a malfunction in any of the centres, the other one would substitute it and they would work at the same time because the company offers services 24 hours, so that the customer can call at any time to reserve an appointment for their car maintenance.
How many employees are in the company?
We have 8,000 employees, and we supervise almost 15,000 workers. We have plans of expansion to double the number for the coming period.
Are there cars that connect to the Internet?
These types of cars do not exist in the Egyptian market so far, but the new Hyundai car can connect to the Internet, and the driver can use the internet to drive without any manual intervention. Two years ago, cars that connected to the Internet were not available at all, but we are getting there.


Clic here to read the story from its source.