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ANIMA PUBLICATION
    16 May 2008 Foreign direct investment into MEDA in 2007: the switch  
   
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SECTOR PERSPECTIVES - INDUSTRY
Automotive, aeronautical, subcontracting, mechanics
The leading world market with 21 million registrations annually, Europe takes the Number 1 spot in the automobile industry with 35% of world production. However, under the impulse of the constructors themselves, the equipment manufacturers, who can assemble up to 80% of a vehicle, are undergoing a major restructuring. They need not only to develop or acquire new competencies, but also seek economies of scale so as to reduce costs.
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Presentation

The movement bringing about the concentration of this industry, which is in an acceleration phase, should inescapably lead to a schematic organisation comprising a reduced number of world giants, specialist groups present in the international market and regional suppliers.
A large number of them have already invested in the other side of the Mediterranean with a predilection for three countries: Turkey, Morocco, and Tunisia. It remains a fact that so as to maintain and increase this flow of investments and to take advantage of these relocations, numerous within the European Union, the partner countries should continue to make efforts in terms of fiscal advantages ( even if certain situations are already very favourable), added value or research centres. And, in an industry such as that of the automobile operating in a short circuit with just-in-time technology, the availability of first class logistics is indispensable.
 
Country focus

In Morocco, AMICA (Moroccan Association for the Automobile Industry and Commerce) has created a portal on Internet which brings together all the players in the sector. Its Chairman, Ali Moamah, is very pleased « with the appreciation of a sector which represents 300 companies, 20,000 employees and 20 billion Dirhams of turnover (1. 9 billion Euros) ».
The world No. 1, the American Delphi, very closely linked to the giant General Motors, did not hesitate to invest 4. 3 million Dollars in 2002 so as to extend to Tangiers its activities for the manufacture of looms and automobile components. Other big names, such as Labinal, a subsidiary of SNECMA, has no fewer than four companies in Morocco (Cabelec, Cablinal, Cablea and CFCA). Volkswagen, Renault, Yazaki and Matis Aerospace have followed in the footsteps of their competitors. In all, from 1996 to 2000, investments in this sector have increased by 35%.

In the same way, the Tunisian components industry has experienced a spectacular development over the last few years thanks to an active policy of partnership with international firms. Among the eight suppliers to the European market, five who between them control 69% of the market, have either invested or sub-contract in Tunisia. For example, the company, Misfat, a specialist in automobile filters, has signed a partnership agreement with the French equipment manufacturer Mecaplast and supplies PSA and Renault, especially with original equipment. «Misfat’s production capacity, explains its Managing Director, Ezzeddine Hentati, is around 10 million filters per annum. Our quality policy has been rewarded with the achievement of standards which position us in the unique list if references which satisfy the requirements of French, German and American manufacturers. We have also invested enormously in the new technologies for the filtration of the passenger cell. »

Turkey is without doubt the country whose performance in the automobile field is the closest to that observed in Europe. It is the only country in the region to possess a completely integrated industry. Over and above the sub-contracting activities, the large order-givers for private vehicles (Renault, Fiat, Toyota, Hyundai and Honda) and those for commercial and industrial vehicles (Ford, Mercedes Benz and Iveco) have assembly plants here. In 2002, 346,565 vehicles were produced in the country, an increase of 28% compared with 2001 (270,685 units) which shows the power of attraction of this territory. The automobile is, in fact, one of the pillars of the Turkish economy. It employs some 500,000 people and brings together more than 1,000 businesses. Assembly operations, initially aimed solely at the local market and protected by customs barriers, have experienced gradual but regular growth in local integration. The most outstanding event was its entry into the customs union with the EU in January. Since this moment, the Turkish automobile industry has lived through a period of rapid change to become gradually a production centre at the service of the world.
 
The automobile market and road infrastructures

Country Roads (km) Surfaced roads  (km) Roads
per 1000 inhab.
Algeria 104 000 71 656 57
Cyprus 10 663 6 249 400
Egypt 64 000 50 000 31
Israel 15 965 15 965 223
Jordan 8 000 8 000 57
Lebanon 7 300 6 350 349
Malta 1 742 1 677 484
Morocco 57 847 30 254 42
Palestinian A. - - -
Syria 41 451 9 575 9
Tunisia 23 100 18 226 16
Turkey 382 059 106 976 -
MEDA 12 716 127 324 928 -
 
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