Skip to main content

Major automakers eying Iraq as country slowly stabilizes

Image used with permission by copyright holder

The country of Iraq is gathering the attention of some of the world’s leading auto manufacturers including Ford, General Motors, and Volkswagen. As Iraq slowly begins to stabilize in wake of all the violence it has undergone, more and more Iraqis are looking to purchase newer vehicles.

Under sanctions placed during Saddam Hussein’s rule, western cars were frozen out of the Iraqi market. Scan the streets of Iraq now and you’ll see a large group of VW Passats that were shipped from Brazil in exchange for oil during the early eighties and early nineties.

Due to increased economic mobility — thanks in part to a dip in violence — Iraqis are beginning to see their income levels slowly rising –giving way to a demand for newer vehicles and a middle-class lifestyle. Last year about 1,500 Iraqis were killed by roadside bombs or other violence. While still abhorrently high, when compared to the more than 34,000 deaths in 2006, it marks a vast improvement. And, of course, safer streets mean more people actually wanting to drive on them.

Interestingly, as it stands now, one of the more popular cars found on the streets of Iraq is the Dodge Charger, (affectionately?) nicknamed “Obama” after the current U.S. president by Iraqis.

dodge-charger-black
Image used with permission by copyright holder

Despite the continued violence Iraqis face, the economy of Iraq is growing and projections remain optimistic. Small wonder then that the likes of Ford, GM, and VW want to move in on the untapped market. While China is still the power-player in the region when it comes to potential market growth, the lure of a growing economy and population of 30 million is more than enough to see various auto makers making a play for the middle eastern country.

That optimism seems to be shared in the region. Speaking to Bloomberg, Philippe Dauba-Pantanacce, a Dubai-based economist at Standard Chartered Bank, predicts Iraq’s economy, boosted by oil revenues and foreign investment, to grow more than 10 percent this year, outpacing all other countries in the Middle East and North Africa.

Both Ford and GM plan on investing heavily in Iraq. GM is looking to open up new showrooms and service centers, while Ford plans on following suit over the next three years with its own centers and outlets.

Despite the improving figures and growing optimism over Iraq’s security and economy, it’s clear many obstacles still remain for the burgeoning Iraqi auto industry and the Iraqi people. Further expansion will depend on concerns regarding poverty levels and remaining security hurdles.

According to the International Monetary Fund, this year Iraqi’s are expected to make the equivalent of $3,528 per person with unemployment levels reaching about 40 percent, according to the World Bank.

Image credit: Namir Noor-Eldeen/Reuters

Editors' Recommendations

Topics
Amir Iliaifar
Former Digital Trends Contributor
Associate Automotive Section Editor for Digital Trends, Amir Iliaifar covers the ever increasing cross-section between tech…
Ford issues safety recalls for three vehicle models in North America
2019 Ford Edge Titanium

Ford Motor Company has issued a North American recall notice for the 2015-17 Ford Transit Van, select 2019 Ford Edge vehicles, and select 2019 Ford Expeditions and 2019 Lincoln Navigators. Each model is being recalled for different reasons.

For the select 2015-17 Ford Transit Vans, affected vehicles were recalled for the driveshaft flexible coupling. It may crack with increasing mileage, resulting in driveline noise and vibration. A cracked flexible coupling can lead to complete failure of the driveshaft which can cause extensive damage while in motion, or while parked it would allow the vehicle to roll if the parking brake is not engaged. At this time there are no reports of accidents or injuries related to this recall problem.

Read more
Vintage car group says EV classics aren’t real classics. Here’s why that’s wrong
volkswagen updates classic beetles with modern electric powertrains e beetle

The Fédération Internationale des Véhicules Anciens (FIVA) has put out a statement that explains how the historic vehicle federation does not recognize a vehicle as historic if it has been upgraded to an electric drivetrain. According to the statement, the group "cannot promote, to owners or regulators, the use of modern EV components to replace a historic vehicle’s drivetrain."

This announcement comes on the heels of several debuts of classic-bodied vehicles with modern electric drivetrains, including those from Lunaz and Swindon Powertrain, as well as factory-backed efforts by Jaguar, Aston Martin, and Volkswagen. FIVA says it sees the need for such modifications, but suggests that modified vehicles remain capable of being returned to factory original specification.

Read more
44 teams just completed a solar car race across Australia
solar powered cars race 1900 mils across australia challange twaron aramid vision article 1

The Bridgestone World Solar Challenge started this week in Darwin, Australia on a 1,900-mile race to Adelaide in a collection of 44 solar-powered vehicles. The biennial race crowns the fastest solar-powered cars in the world. Entries came from 20 different countries, and include four from the United States; University of Michigan, Stanford, the University of Minnesota, and University of California - Berkeley.

Run since 1987, this event is possibly even more relevant today than when it first started. With the onset of electric-powered cars, motorcycles, and bikes, the world could be turning a corner on how we power our transportation. With the great strides in power and distance an electric vehicle can now travel, it makes sense to look for the same gains in solar power.

Read more