Morocco’s Car Rental Industry Faces Crisis: 60% of Agencies Bankrupt, Thousands of Jobs at Risk

The car rental sector is going through dark times. While the first eight months of the year have been quite difficult, what is looming will be even more so. According to Alascam, by the end of the year, the sector could lose 15,000 jobs out of the 20,000 it has.

According to Tarik Dbilij, former president of Alascam, the situation is worrying. "Bankruptcies will accelerate as banks recover their loans. Mass seizure of vehicles is to be expected and at least 50,000 units will be sold on the used car market," reports autonews.ma.

Long-term rental is for the moment spared by the crisis, even if some cancellations have been recorded with SMEs. Soon the market will be flooded with used cars because the banks have seized enough from short-term rental companies. Long-term rental companies will find themselves in difficulty since their main source of income is the sale of used cars. Only the most skilled have been able to protect themselves from danger by selling a significant number of used vehicles, the same source specifies.