1. Egypt National Car Initiative

2. What’s in it for Egypt? Tangible National Project Promotion of Egyptian Product and Capability Improved Utilization of Capacity Raised Level of Technology Transfer and Potential for Industrial Training Centre Increase in number of SME companies and associated jobs Generation of good quality jobs in engineering and production Vehicles of good quality matching the market requirements Reduction in pollution generated from vehicles Potential export earnings and raised GDP Injection of national pride in achievement Potentially self funding

3. Scoping Visit Observations Timing for Initiative Homework Huge Appetite For Initiative Political Entrepreneurial Attitude Existing Industry Structure Feeder Infrastructure Market Growth Domestic Export MENA, GCC, Africa Free Trade Agreement +/- History of car manufacture Human Resources Educated and Willing VCS (MOT) Opportunities Fragmented Low Volume Op’s Possible lack of facilities for +100,000pa OEM Controlled Lack of ownership for IPR Weak R&D Centre Perceived Lack of Champion No visible industry integration policy Lack of VICS No control of quality of imports Free Trade Agreement +/- Current Assembler Threat Lack of Dedicated Team (Busy Members) Studies/Discussions in progress not shared data

4. How Can It Be Done? Secure Political Support Appoint Initiative Champion and Executive Team Conduct Feasibility Study – Define Key Factors Attract Key Partners and Investors Secure Funding Establish Programme Team and Timetable Prepare Product Proposal Develop Feeding Infrastructure Implement Project

5. Indicative Study Team Members

6. National Car Co. Basic Structure Indicative Process Timeline

7. OEM – Original Eqp. Manufacturer NTC – National Technology Centre UK DC – UK Design Centre NMP – National Manufacturing Park NSP – National Supplier Park PCAP – Passenger Car Assembly Plant CVAP – Commercial Vehicle Assembly Plant BVAP – Bus Vehicle Assembly Plant NSD – National Sales & Distribution Specialist Government Foreign Partners Enablers CCA National Co BOT to Establish

8. OEM 51% Land & Permissions Buildings & Infrastructure Venture Investment Funding Supplier Park NPD Investment Funding Government Support Systems Rental Agreements Financing Agreements Financing Agreements GOV Manufacturing Operations, Sales and Distribution GOV 49% Supplier

9. Scenarios New Assembler into existing improved facility New Assembler – own facility Existing Assembler – Modified Product New Egyptian Entity OEM Partner (Existing or New Relationship) New Jointly Developed Product for MENA

10. National Opportunities: Sales, Distribution, and Service Network Technician Training, Certification, Callibration Export Revenue (Barter Trade) Sales and Service Network Knowledge and Technology Transfer, Design and Engineering Know How. Partnerships and JV’s Increase Quality Cost Manage low cost supply chain Regional Opportunities/Job creation: Academic and Skills Development, to support R+D Centre and future Industry and product plan Develop existing plants and supply base - increase localisation Housing/Road/Infrastructure Development Inward Investment/ Inward Migration R+D CENTRE of Excellence Universities Other Plant Bus Plant Car Plant Supplier Park Regional Benefits. Vehicle Manufacture $ Exports

11. Innovation Centre/ Knowledge Pool Technical Inputs Benchmark Target Setting Attribute Data Legal Compliance Technologies Sustainables Hybrids Alternative Power Light Weight Interactive Tech. Designing Demand Branding Trends Analysis Demographics Styling Physical Outputs Prototypes Models Mules Quality Academia Industry Policies Research

12. Automotive Public Transport Aerospace Projects Academia and Research Outline Structure of Centre of Excellence Government/Industry Body R&D Centre External/Special Projects Potential Partners Knowledge Pool Expertise/Tech Transfer Market intelligence Commercial Services

13. The Program actively works with other agencies on creating solutions to lay out the right foundations in the areas of industry, human capital & finance Manufacturing Clusters Research & Innovation TrainingEducation Human Capital Enablers Financial Enablers Industrial Enablers Supply Chain Competiti veness Materials Infrastruc ture LoansPoliciesTradeEquity Priority

14. Higher labour content due to assembly into systems High value items Very sensitive to logistics – integrated with OEM assembly Types of activities at various Levels of the Value Chain Tier N Standard parts & Materials Tier 2 Sub-systems & Key Components Tier 0.5/1 Systems & Modules OEM Typical characteristics of Components Higher labour content due to assembly into systems Specialized components, specific to a platform or model High value items Can be sensitive to logistics Higher material content, lower labour content Standardized components, common across many platforms Low value items Lower logistics costs

15. Supported by a broad base of Ancillary Operations Cluster Services Infrastructure Designing Tooling Quality Assurance Testing and certification Painting/Coatin g Polishing Packaging Shipping Research & Training School of Automotive Design & Engineering Higher Institute for Plastic Fabrication Auto School Collaborative program for advanced Composites Advanced materials design and development Industry Associations Association of Automotive Parts Manufacturing National Auto Design Association Export Promotion Bureaus Advantaged Pak Factor Inputs Aluminium Steel Plastic Chemicals Rubber Glass Paints Coatings Energy Labour Tier N Tier 2 Tier 0.5/1 OEM

16. Vehicle Inspection and Certification Service (VICS) Introduction: Vehicle Test as part of integrated Industrial plan Pass Fail Industry Opportunities Phase 1 Year 1 Local manufacture of consumables (Technical Partnerships) Brakes Lamps Suspension Phase 2 Year 2 Local (re)manufacture of Systems (Technical Partnerships) Electronics Engines G/Box Phase 3 Year 3 Increase local manufacture to absorb demand and limit CBU imports. SKD initially, CKD, and localise over time Motorcycle CV Bus Passenger car

17. Vehicle Inspection and Certification Service (VICS) Introduction: Consequences: Potential increase in imports Parts CBU (Complete Built Up Vehicles) Increased cost to the road user (public and private) Increased cost to OEM,Supplier, Coach Builder (Improve Quality) Government costs and enforcement Disposal Towing Compounding ANPR (Auto number plate recognition) Benefits: Improved road safety Less congestion Environment Opportunity to be part of integrated transport Industry Plan Forced upgrade of Industry Increased local parts and CBU production Regional Export opps Job and skills creation Technology Transfer and Partnerships