Algerian turmoil threatens the local motor industry
Subject Auto manufacturing and corruption. Significance The government on August 25 appointed judicial administrators to manage three major companies whose chief executives were detained as part of a wide-ranging anti-corruption drive, including the Tahkout Manufacturing Company, which produces cars. Local auto manufacturing -- a flagship industry under ousted President Abdelaziz Bouteflika -- has been badly affected by the anti-corruption campaign, with some companies struggling to pay staff and import parts. It is also threatened by concurrent new regulations introduced by the government. Impacts In the longer term, a re-evaluation of the programme of state support for the industry could threaten all manufacturers. Projects underway to build new Nissan and Peugeot plants by 2020 may be delayed or cancelled. Damage to the industry poses particular risks to the economy of the north-west, where most factories are located. Foreign firms in other sectors will be reluctant to invest in Algeria, fearing that local partners could be caught up in criminal cases.