Economy

The Automotive Sector on the Brink of Total Collapse

The Automotive Sector on the Brink of Total Collapse

Eli Qazzi, the president of the Lebanese Association of Used Car Importers, warned in a statement that "the automotive sector continues to face more challenges and difficulties, placing it on the brink of total collapse." He pointed out that "the strike of public administration employees and the resulting closure of registration centers have worsened the automotive sector, which has hit rock bottom." He highlighted that "the association has repeatedly affirmed the legitimacy of the demands of public sector employees, but the ongoing open-ended strike is causing significant harm to car showrooms and importers," indicating that "the cars parked in showrooms are losing value due to the inability to sell, with the closure of registration centers preventing the registration of sold vehicles. Naturally, no customer will buy a car from showrooms as long as they cannot prove ownership through registration, while showrooms incur costs for rent, electricity, employee salaries, and other unbearable operational expenses."

He stated: "If the situation continues as it is, it will inevitably lead to a loss of the summer season," noting that "showroom owners and importers had relied on this season, where expats usually purchase cars for themselves or their family members, and with the closure of registration centers, this will not happen." He emphasized the "necessity for the government to fulfill its duties and find fair solutions for public sector employees," calling for "the reopening of registration centers in Lebanon so that the sector can benefit from the remaining month of the season." He revealed that "the association has contacted the head of the public sector employees' union without reaching satisfactory solutions."

Qazzi concluded by saying: "Enough is enough," announcing that "the association is currently considering a significant and pressing move in rejection of what is happening to the automotive sector and all its workers."

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