Economists: “No Algerian-Made Car Before Five Years”

date 2017/07/03 views 565 comments 0
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icon-writer Belkacem Houam /*/ English Version: Med.B.

Economists and experts in the national economy sphere called for not rushing to hike the percentage of integration in the manufacture of cars to levels not applicable, which threatens to stop the vehicle installation activity in Algeria, in so much as the current book of specifications compels Algeria-based car dealers to achieve a rate of integration of 40 percent within five years.

This process will contribute to the manufacture of Algerian cars in the true meaning of the word, they argued, as well as allow for the achievement of around 30 percent of genuine vehicle spare parts in Algeria itself. 

In this context, economist Mr. Kamel Zirk said in a statement to “Echorouk” that the rush to increase the unrealistic integration levels can contribute to the suspension of car manufacturing plants and clear the way for smuggling to neighboring countries, because, he said,  Algeria lacks a genuine industrial base and institutions able to accompany the car installation plants in both quantity and quality.

The car manufacturing in Algeria could not be assessed until at least five years will elapse, as defined by the present book of specifications so as to achieve the projected integration rate, he explained.

Our interlocutor asserts that most of Algeria's car manufacturing plants have not been established for three years and have not yet reached 15 per cent integration rate in keeping with initial objectives.

For his part, the former minister and economic expert Mr. Bachir Mustapha criticized the running of car installation plants in Algeria, stressing that the latter have not yet reached the expected integration rate of 5 percent, in contradiction with the terms of the book of specifications, which requires the attainment of 12 percent in the first year.

This adverse situation, he added, might lead to cancellation of the factory contracts that do not strictly comply with the relevant book of specifications.

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