General Motors has seen its business in the volatile Middle East grow more than 60% this year, but the company has no presence in Iraq and no immediate plans to re-enter the ravaged country, the Associated Press reported.
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Maureen Kempston Darkes, GM’s vice president for the Latin America/Africa/Middle East region, told AP that new models from Chevrolet and Cadillac have led GM’s surge in the Middle East where GM has operated for roughly 80 years, and its trucks, sport utility vehicles and premium cars traditionally have been top sellers.
But changing demographics have prompted a shift in demand for smaller cars, Kempston Darkes told AP, and the car maker has begun touting Chevrolet as its “fundamental brand.”
Kempston Darkes reportedly said at least half the region’s current population is under the age of 25.
GM spokesman Gus Buenz told the Associated Press the company sells small Chevy cars such as the Aveo and Optra and other vehicles built at GM plants in South Korea, Australia and North America. GM also has established a dealer network to sell the Cadillac, Hummer and Saab brands together in about 10 Middle Eastern countries, including Saudi Arabia and the United Arab Emirates, Kempston Darkes told the news agency.
AP noted that GM ended business in Iraq more than a dozen years ago because of US sanctions imposed at the time of the first Gulf War, which started in 1991. US economic sanctions also prevent it from conducting business in Iran, Kempston Darkes, who directs her extensive region from offices in Miami, added.
Over time, she reportedly said, it would be natural – and good business – for GM to re-establish normal operations in Iraq.
Associated Press noted that GM does business in 15 markets in the Latin America/Africa/Middle East region, which covers 86 countries and the region accounts for roughly 8% of GM’s global sales – or about 1.2% of GM’s 15.5% global market share.
