Al Mansour Automotive and UAE-based Scope Investment announced the launch of a partnership between them to distribute Peugeot vehicles in Egypt.
The new alliance is expected to release two new Peugeot models in the presence of a delegation from the international company. They will also open the first Peugeot showroom in Egypt as a first step of their agreement under the umbrella of the French brand.
The French Groupe PSA chose Al Mansour and Scoop to act as the authorised distributors of Peugeot cars in Egypt.
Daily News Egypt reported in its November coverage of the issue that Al Mansour had the best chance of winning the agency contract, after the company’s shares have risen since Peugeot-Citroen acquired Opel, for which Al Mansour has been operating as agent in Egypt for many years.
According to a statement issued by the French brand, a copy of which was obtained by Daily News Egypt, Groupe PSA invited in May 2017 interested companies to bid for an open contract for the import and distribution of Peugeot cars in Egypt.
The French group received a number of offers, including an offer from the current distributor, Cairo for Development and Cars Manufacturing (CDCM), and another from the Al Mansour-Scoop alliance.
Groupe PSA said in the statement that they accepted Al Mansour-Scoop’s offer after a trade-off among the presented offers.
The French company said that they are now putting final touches to complete the agency contract’s terms in Egypt, in preparation for activating it this year.
According to the statement, the new agreement will not only mark the beginning of a new era in the history of the two partners, but it will also allow new advantages for the French brand’s customers in Egypt.
Hisham Ismail, director of investor relations at Arabia Investments, Development, and Financial Investment Holding Co (AIND), owner of CDCM, told Daily News Egypt that the company was surprised by the French company’s decision to cancel their agency contract without prior notice.
He added that they will communicate with the French brand to know the reason for the sudden unilateral termination of the contract. At the same time, the company is considering the possible legal procedures that will be taken to preserve its rights and the interests of tis shareholders.
Daily News Egypt found that the CDCM had received a notice from the French side earlier this year demanding the Egyptian side increase the quantities of imported Peugeot cars to cover the local demand and expand their service centres.
According to the CDCM, the company responded positively and recently requested more cars from the French side.
The CDCM said it does not know the fate of the new car shipment which is scheduled to arrive soon, after the French company had cancelled its contract.
On the other hand, sources at Al Mansour Group said that they are currently studying with Scoop and the French company the launch date of their new partnership and their working plan for the coming period.