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Summary

The opening of Geely's new car manufacturing plant in 6th of October City, Egypt, marks a major step in localizing automotive production. The factory meets international standards and focuses on increasing local content, with 45% of the car components being locally sourced. This move is part of a broader effort to make Egypt a regional hub for Chinese car brands, creating jobs, boosting the economy, and addressing the dollar crisis. Other companies are also setting up production lines for various car brands, with a strong focus on quality and competitiveness in the market. The future of Egypt's automotive industry looks promising as production and export opportunities expand.

Takeaways

• 😀 Egypt is opening a major factory in 6th of October City to manufacture Geely cars, which are among the top-selling vehicles in China.
• 😀 Egyptian businessmen have shifted from being car dealers to becoming producers by establishing local manufacturing plants.
• 😀 The factory in 6th of October City is the first CKD (Completely Knocked Down) assembly plant in Africa and the Middle East, and it follows global manufacturing standards.
• 😀 The factory has locally developed 14 key components for cars, with over 45% of the parts being locally sourced, with plans for further local integration in the future.
• 😀 Geely's new sedan model, produced in Egypt, is popular globally and has been sold in over 20 countries, with annual sales exceeding 3 million vehicles by 2020.
• 😀 Egypt's car industry aims to increase local production and expand exports, with efforts to reduce car prices and enhance job opportunities locally.
• 😀 Various Chinese car brands, such as Changan, Zoyte, and Baic, are also establishing factories in Egypt, contributing to local manufacturing growth.
• 😀 The factories in Egypt help reduce the country's dollar crisis by increasing domestic production and exports.
• 😀 Geely's production in Egypt includes models like the Emgrand and Koray, produced to international standards of quality, safety, and technology.
• 😀 The factory aims to raise local manufacturing from 45% to 50%, with a focus on improving product quality and reducing vehicle prices to enhance competitiveness.

Q & A

What is the significance of the new Geely car factory in 6th of October city?

The new Geely car factory in 6th of October city is crucial for both Geely and the localization of car manufacturing in Egypt. It is the first CKD (Complete Knocked Down) factory in Africa and the Middle East, contributing to the development of the local automotive industry.

How does the Geely factory support Egypt's automotive industry?

The factory is designed to support the localization of car manufacturing in Egypt by achieving a 45% local component rate, with plans to increase this figure. This is a key step towards reducing reliance on imports and boosting the local economy.

What is the current and future impact of the Geely factory on car production in Egypt?

The factory will help Egypt move towards producing 4 million cars globally. Initially, the focus is on assembling cars, but the long-term goal is to increase the local production percentage and eventually create Egypt’s own car brands.

What role does the Egyptian government play in supporting car manufacturing in the country?

The Egyptian government plays a significant role by providing incentives to boost car manufacturing. For example, the government supports programs for the development of the automotive industry and encourages local and international companies to invest in Egypt.

Which other car manufacturers are setting up factories in Egypt?

In addition to Geely, several car manufacturers have set up or are planning to set up factories in Egypt, including companies like Mansour Group, the Egyptian German company, Ghabbour Auto, and the El-Safa Group, each with different production capacities and models.

What is the significance of the local production percentage in the Geely factory?

The local production percentage, currently at 45%, is significant because it reduces the cost of car production, potentially lowers the price of cars in the local market, and helps Egypt become more self-sufficient in car manufacturing.

What challenges did the team face in setting up the Geely factory?

The team faced significant challenges in setting up the factory, including intense effort in managing production timelines, assembling equipment, and training staff, but overcame these hurdles to launch the factory on time.

How is the Geely factory ensuring high quality in its production?

The factory ensures high quality by using world-class manufacturing standards and techniques, including laser welding and flexible production lines. The team also brings in experts from BMW and focuses on training local staff to maintain high quality throughout the production process.

What is the expected production output for the first year of the Geely factory?

The factory is expected to produce 3,000 cars in its first year, with the goal to increase output gradually as production capabilities expand.

What is the importance of having both local and global partnerships in Egypt's automotive industry?

Having both local and global partnerships is essential for knowledge transfer, skill development, and ensuring that Egyptian factories can meet international quality standards. This collaboration helps localize production, reduce costs, and create global export opportunities for Egypt.