Production of Toyota SUVs Begins in Egypt

Cairo-based Arab American Vehicles Co. has begun assembling Toyota Motor Co.'s Fortuner midsize SUV in Egypt. Toyota, which currently sells imported Fortuners in Egypt, will begin offering the locally built model in May.

Toyota's local unit will oversee quality control and logistics. The company expects the operation to produce about 3,000 Fortuners per year. The vehicle is built from parts made in such countries as Japan and Thailand.

Arab American Vehicles is 49% owned by Chrysler Group LLC. The Arab Organization for Industrialization holds a 51% stake. Arab American also produces vehicles under license for Chrysler, Daimler, Kia and PSA.

Vehicle sales in Egypt fell 29% last year to 176,200 units amid the country's political upheaval, but Toyota expects a rebound in sales growth.