Morocco?s automotive industry shifts gears to prep for electric vehicle era

TANGIERS, Morocco — A train that travels from rural northern Morocco to a port on the Mediterranean Sea carries no passengers. Three times a day, it brings hundreds of cars stacked bumper to bumper from a Renault factory outside Tangiers to vessels that transport them to European dealerships.

Unencumbered by many of democracy’s checks and balances, the government tells companies looking to outsource production to cheaper locales they can get approval for new factories and complete construction in as little as five months. Devoting immense resources to developing and maintaining an automotive sector that could employ a young and growing workforce was part of a 2014 industrialization plan. To create jobs, Mezzour said that he and his predecessors have focused on offering more than cheap labor to foreign automakers looking for new places to build cars and produce parts.

Abdelmonim Amachraa, a Moroccan supply chain expert, said the spending on infrastructure and training skilled workers puts the industry in a good position to lure investment from automakers looking to build out their electric vehicle supply chains. He said the industry is likely to continue growing because Morocco's “integration rate” — the percentage of parts that carmakers can source domestically — has steadily risen to more than 65%. The country also has a competitive advantage by having the experienced and skilled autoworkers that some other outsourcing destinations lack, Bachiri said.

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