Daimler AG and Algeria, the results of the revolts in North Africa


photo credit: marcovdz

Today on March the 23rd I just got the following press release by Mr. Fabio Franchi (PR at Daimler Italy):

On March 22, 2011, Daimler AG, the Algerian government, and PJS Aabar Investments signed a memorandum of understanding with Regard to the assembly of trucks and buses. The project encompasses the supply of vehicle parts to Algeria for local assembly in Rouiba. Daimler Will Provide technology and supply parts and components on a Contractual basis.
The Abu Dhabi-based Aabar Investments PJS company and the Algerian government will Establish a joint venture in Rouiba, Algeria, That Will Be Responsible for the operational management of the vehicle assembly facility.
Says Peter Alexander Trettin, the Daimler executive Responsible for the salt of Mercedes-Benz vehicles in Central and Eastern Europe, as well as Africa and Asia: “We are Strengthening Our presence in North Africa and Exploiting the Algerian market’s growth potential for vehicles of all kinds. Also the project helps us to make a positive contribution to Algeria’s Economic Development. In this way, Daimler is creating new jobs in Algeria and Safeguarding Our jobs at German plants. “
Daimler and Aabar HAD Already signed an initial memorandum of understanding with the Algerian government on July 28, 2009. In line with this agreement, Daimler will supply modules to an assembly plant in Tiaret, Algeria, for the production of Sprinters, Unimogs, and G-Class vehicles.
Through the ITS projects in Algeria, Daimler is supporting the Economic Cooperation Between Germany and Algeria AGREED That Was in on the first protocol of the Germain-Algerian Joint Economic Commission, Which Was signed on March 9, 2011 by the German and Algerian Governments. In this context, a training program will be Carried out in Cooperation with the Algerian government and Aabar in line with Germany’s work-study training system.
Aabar Owns a 9 percent share in Daimler AG, Which Makes It the company’s largest individual shareholder. For Daimler and Its major shareholder Aabar, the constituta Activities in Algeria Another joint project close for Promoting Cooperation.

Right! It is with pride, satisfaction and determination that I could say: I did wrote that in the past already!

On this current Blog (on February the 8th) I launched an impact analysis about what is happening over North Africa (Algeria, Tunisia, Egypt, …) affecting the European market and, particularly, the automotive field.

All the South Europe Countries (especially Italy) they should watch those developments with great interest while stopping to have a pre-war colonial mentality approach, although timing will be changing!

This is a great initial step, even if not much significant, but very encouraging. You should know that in Morocco, Tunisia, Algeria and Egypt, since few years, there are infrastructure investments (such as roads and railways) of great strategic and economic importance, well programmed and largely funded for the next 10 years coming.

Regarding Daimler operating the tactic described in the press such as being on the front line to sale that product and, in the short-medium term, significantly increasing the domestic demand in those Countries.

The thing that makes me more “upset” is the case of the structure of Termini Imerese that now assume a role of great strategic value perspective. Fiat had “endured” it for decades and now that it could begin to be fruitful it is left to other foreign investors. Marchionne as being an extremist to the Theory of flexibility might surprise us positively eventually, The Italian System, again?
If so I’ll change my job and start doing something else!

Otherwise the “merit” that I take is quite simple. I go preaching for some years…the automotive world (like all other business industries) is not a life of its own but is a part of everything and we cannot live closed in our four walls, moving mechanical levers, convinced that we are untouchable.

Let’s take for example the Marketing Managers. Since decade they lost days behind extra allocations, goals or unpacked data in the last week of the month. It is really funny if you look at the world outside how in reality is.
So if any CEO drives a model of a business that has not good sales performances because he wants to understand the reason of the failure…well I can only be very sarcastic about!

The world is out of our golden office. So head down on the piece and shoulders straight and let us look around constantly. Theorists would invoke the NLP (Neuro Linguistic Programming) saying we are leaving our comfort zone!

Watching the moon coming out while we are onto the street to look at her, standing on our feet on the ground, it is not enough to see her on the desktop of our PC.


(Translated By Matteo Ceronetti)

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  1. Well, I’ve got two important updates:

    1) In Morocco, Renault has built a new factory for the European car market and North Africa!
    2) VW is planning, with the support of Qatar (one of the largest shareholders of Volkswagen Group), to build a factory in Algeria.

    Do you have any doubts about my Economic Analysis?

    Have you any doubt about my economic analysis?

  2. Red says:

    The project in Algeria is pure BS for Daimler.
    Daimler is not represented as the company Daimler per se
    They created a new company to handle the project
    Al Abbar investment got a loan from Algerian banks…..
    They are completely cutting of the local production of the existing truck manufacturer SNVI that has been building buses for 30 Years
    The integration rate is moving from 30% to 10%

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