For these reasons, the Algerian Government favoured “Renault” and “Peugeot” instead of “Volkswagen”!

The Algerian Government has dealt a strong blow to the German “Volkswagen car maker” whose negotiations with Algeria steeped into a dark tunnel, as French President Francois Hollande’s recent endeavour to speed up ongoing negotiations for the early achievement in Algeria of a Peugeot factory has made great strides to the detriment of the German car manufacturer.

The move is deemed as a knockout blow to the Germans, although “Volkswagen” started negotiations with Algeria at the beginning of 2009, well before the re-launching of the Renault negotiations which were frozen at an earlier stage.

Despite the reported “Volkswagen” negotiations with Morocco to set up a car factory there in 2012, but this wasn’t officially declared by the country’s official authorities, unlike the situation for Renault and Peugeot, which negotiated with the Algerians. The latter  in examined feasibility procedures for opening factories in Morocco in the summer, even before reaching a final deal on the matter with Algeria.

In this context, Algerian economic expert Abderrahmane Mebtoul, said that President Francois Hollande had strongly defended during his latest brief visit to Algeria France’s economic interests which are beginning to be sharply eroded by its main rival China which now holds sway in the Algerian market as its main supplier.

He further indicated that France preferred to enter the Algerian market through the setting up of car-assembly plants and new investments like the Peugeot and Renault factories, instead of the cumbersome container port activities as part of its exports to Algeria.

France has of late requested from the Algerian authorities the abolition of the country’s 51/49 investment rule in relation to some precise projects, and its continued implementation in accordance with the strategic nature of each investment project.