German car maker Volkswagen is contemplating the possibility of manufacturing natural gas-powered vehicles in Egypt, reports say.
Volkswagen, Arab Finance reports citing AI Mal News is in talks with Egypt’s Arab Organization for Industrialization for a seven-year deal partnership deal. The agreement will take hold once the Egyptian government gives the right incentives.
The incentives expected to spur the partnership include customs and tax reduction, as well as a relaxation of labor laws to attract more foreign staff.
The car maker giant would manufacture the natgas-backed versions of its Crafter and Caddy 5 cars for the local market in Egypt.
Crafter would replace microbuses used for public transportation, while the Caddy 5 would substitute old passenger cars and taxis, Egyptian Automotive and Trading Company CEO Karim Naggar told AI Mal News.
Egypt, Arab Finance reports, is looking to convert 147,000 vehicles to function by natural gas engines.
Volkswagen mulls plans to produce natural gas-powered vehicles in Egypt
