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The Construction Vehicle & Con-
struction Equipment line of business
is expected to continue its expansion
into the tourism sector (having al-
ready throughout the year delivered
coaches for companies TEZ and Car-
ols) and pursue new agreements for
the supply of intercity buses. In light
of this, GB Auto expects to be able to
take full control of GB Polo’s activi-
ties, with a focus on export potentials,
after having increased its share in the
joint venture to 80% from 51% in 2016.
Other divisions in this LOB, such as
trucks and trailers, are also expected
to take on a more important role in
GB Auto’s strategy as the Egyptian
government presses on with large
infrastructure developments.
The company also expects to increase
its supply of tires and expand its brand
representations, particularly with the
success noted after the company add-
ed Double Coin, Westlake, and its own
brand Verde in 2016. Going into 2017,
GB Auto is negotiating the distributor-
ship of several reputable brands to
reinforce its brand portfolio in Egypt
and Algeria, where the company plans
to launch its Verde tires in 1Q17.
Effective Inventory
Management
While GB Auto expects to return to
normal run rates by the end of 2017,
the company is still holding back in-
ventory to its network of independent
dealers, meaning inventory will take
time to normalize. We also expect to
shift our strategy for inventory man-
agement from one based on pricing
to bringing inventory back down to
historical days-on-hand.
2016 ANNUAL REPORT
17