Mitsubishi Motors Corporation appointed its new distributor for Egypt, which will be a joint venture between Al Mulla Group Holding Company and Mohamed Abdulmohsin Al Kharafi & Sons.
In a statement to the press, the parties said they have signed a letter of intent and are negotiating the execution definitive terms. MMC said the new distributor will launch a service campaign, provide after-sales services and expand sales of its products in the Egyptian market.
The firm also confirmed that its non-exclusive distribution relationship with Masria Motors Company expired on July 20.
John Matouk, legal counsel of MMC, said, “Masria consistently purchased vehicles and spare-parts from MMC and re-sold them in the Egyptian market in its own name and for its own account. This is a basic distributorship structure and clearly does not fall under the definition of an agency under Egyptian law.”
Osman Mowafy, the legal counsel of Mitsubishi, noted that this issue is also currently being reviewed by the administrative courts in order to understand the basis of Masria’s registration at the Export and Import Control Authority when in fact Masria was non-exclusive distributor, the statement read.
He added that no decisions were issued to ban the importation of Mitsubishi’s vehicles or spare parts into Egypt and that the Minister of Industry and Trade has not issued a decree with regard to MMC and Masria, denying newspaper reports to the contrary.
