General Motors’ Australian unit Holden has welcomed the federal government’s announcement to pursue free trade agreement negotiations with the Gulf Cooperation Council (GCC).
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Holden chairman and managing director, Denny Mooney said the Middle East is the Australian automotive industry’s largest and most important export market.
“Although car ownership levels are quite low, both the population and the economy is growing, offering great potential for future automotive demand.” Mooney said.
GM Holden began exporting to the Middle East in 1998. Its Commodores and Statesmans are sold as the Chevrolet Lumina and Caprice in Saudi Arabia, the United Arab Emirates, Kuwait, Oman, Bahrain and Qatar.
Mooney said the Middle East has been GM Holden’s most enduring export programme.
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By GlobalData“Our exports to GCC countries have become a key component of GM Holden’s strategy to diversify it’s volume base and fully utilise capacity in our vehicle and engine plants.
“Last year alone, GM Holden shipped more than 30,000 vehicles to the Middle East.
“GCC consumers have demonstrated a strong preference for the types of vehicles Australians have traditionally embraced. Only last night the Australian-built Chevrolet Caprice was named Autocar magazine’s 2006 Best Luxury Car in the Middle East.
“The GCC currently has a 5% tariff on passenger motor vehicles. An eventual FTA would ensure Australian manufacturers maintain their competitiveness in the Middle East market as the GCC actively seeks agreements with other major car-producing economies,” Mooney said.
In 2005 Holden exported 60,518 vehicles.
Toyota’s Australian unit exports Camry models to the Middle East.
