Wednesday, November 18, 2009

Promoting the automobile production

The lack of take-off of automobile production in southern Mediterranean is mainly due to weakness and instability in demand. The total sale of new vehicles is still far from the threshold necessary to install an integrated production unit. Given a limited purchasing power, the households tend to favor the purchase of used vehicles from the European Union, so that one of the first steps committed to promoting local production is the restriction of imports used car new.
After Morocco, Algeria has been engaged in this direction with a ban intended to be effective since September 2005. To the extent that the fleet consists mainly of very old vehicles, an additional device is the establishment of roadworthiness required to decommission the vehicles most hazardous movement.

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