The big-three American car makers — Ford, General Motors, and Chrysler — are looking at the possibility of setting up assembly plants in Saudi Arabia, Arab News reports. The plants would serve to feed the regional Gulf market. American companies are far from the only ones looking at vehicle assembly in the Kingdom. Isuzu is moving forward on assembly plants for light trucks. The Indian giant Tata is as well. Even Jaguar-Land Rover see potential in local assembly.

I think this is going to happen. But I also think it will be interesting to see if any sort of market develops for electric vehicles. The potential for solar power generation in Saudi Arabia is considerable, to say the least, but it’s not online yet. Given the strain already being placed on the Saudi electrical grid, I suspect these vehicles are still quite some way away from becoming popular.

Ford moves closer to Saudi auto plant

American car manufacturers GM, Chrysler and Ford are seriously studying proposals to set up their plants in Saudi Arabia.

The new assurance came following a meeting of the Saudi-American Business Council in Detroit when the US side said it would press on the car manufacturers in invest in the Saudi market.

During the Detroit meeting, the Saudi side gave a detailed presentation on the incentives offered by the Kingdom to foreign investors, especially in Yanbu automobile complex.

Nabil Al-Husin, a member of the National Committee for Car Representatives at the Council of Saudi Chambers and regional director for the Western Province for

Tawkilat Al Jazeerah (Ford representative in Saudi Arabia), said Ford has been seriously studying establishing production lines in the Saudi local market for more than a year now.

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