Auto Parts Trade With Morocco

    252 Pond Street

                                                                            
                                                        Hopkinton, MA 01748



    GLOBAL TRADE IN AUTO PARTS ENCOURAGED BY NEWEST FREE TRADE AGREEMENT



    Immediate Release
Confirmation: 508 435-4882



    Hopkinton, Mass. – Auto parts manufacturers in the Kingdom of Morocco
are beginning to focus on the competitive market dynamics of the USA
aftermarket.  Earlier this year Moroccan parts companies began taking
advantage of a recently launched Morocco New Business Opportunities (NBO)
program. The program is financed by the US Agency for International
Development and executed by Nathan Associates, a USA economic consulting
firm.  NBO is designed to help Moroccan firms in several industry sectors
export to the USA and take advantage of the USA-Morocco Free Trade Agreement
(FTA), which entered into force January 1, 2006.



    Site visits in Morocco, seminars, and one-on-one meetings are part of
the NBO initiative.   Mr. Henry P. Allessio, managing director of Walden
Consultants Ltd. is the Senior Automotive Parts Sector Consultant for the
NBO program.  He has established a liaison with dozens of Moroccan parts
manufacturers that are eager for a better understanding of the USA market
requirements to enable sales to be made in the most effective ways.



    Mr. Allessio reports, “The product quality across the board is
exceptional.  ISO and forthcoming TS certifications are the rule, and the
suppliers have years of experience serving the OE requirements of Western
Europe.”  “Moreover,” Allessio continues, “the positive attitude of the top
managements is an attribute which will support good relationship building
from the onset as these companies demonstrate their capabilities to
interested American companies.”



    The USA imported 141 percent more auto parts from Morocco in 2004, than
in 2003 – admittedly from a small base, but before the FTA.  In addition to
the sales momentum already underway, Morocco has an educated workforce with
an average wage which is ­­­about 20 percent that of auto manufacturing wage
levels in the EU (Spain), and about the same as those in Turkey.  For USA
importers, the USA-Morocco FTA will, of course, reinforce Morocco’s cost
advantage by eliminating tariffs.



    During the first half of this year Mr. Allessio will focus his NBO
efforts in developing aftermarket relationships in the USA for specific
Moroccan companies that supply filters (oil and air), radiators, brake
friction, and cutch facings.  Existing applications include both passenger
vehicles and heavy-duty trucks.  New SKUs for wider product ranges, and
recruiting sales representation will be objectives for 2006.  Future
activities will include additional products, and an examination of OE
opportunities at various tier-levels of supply.  Other products preparing
for USA market entry are: exhaust, pistons, leaf springs, non-electric
cables, tempered glass, seats, electronic assemblies, lighting lens, and a
wide range of plastic molded items.



    Walden Consultants Ltd. regularly conducts corporate strategy,
marketing, competitive analysis, and acquisition planning assignments for
domestic and foreign clients.  Automotive businesses are one area of
specialization for the management consulting firm which has offices in
Hopkinton, Mass.

                                                                            
                        Hallessio@waldenconsultants.com