Not only will Saudi Arabia start producing Isuzu pick-up trucks, Reuters reports that the Kingdom is also looking into creating an assembly plant for high-end Land Rover and Jaguar vehicles. In addition to simple assembly, this plant might also use parts manufactured in Saudi Arabia from aluminum mined in Saudi Arabia.
Al Arabiya TV carries this story about another effort to diversify the Saudi economy…
Riyadh: Jaguar Land Rover (JLR) signed a preliminary deal to build a plant in Saudi Arabia, extending its expansion in fast-growing markets having already started work on a plant in China.
The British luxury marque, owned by India’s Tata Motors (TAMO.NS), signed the deal to look at the possibility of making 50,000 Land Rovers a year at a Saudi plant costing some 4.5 billion riyals, the country’s commerce and industry ministry said in a statement.
A spokesman for JLR said the agreement was “purely exploratory” and it was too early to provide any details.
JLR has seen huge demand over the past year from emerging markets such as China, Russia and countries in the Middle East for its luxury SUVs and sleek sedans, offsetting sluggish growth in developed markets.
UPDATE: The Economist gives its vote of approval to the plan.