Auto Industry Slowing In The Middle East:GM

General Motor GM.N said it expected the
automobile industry in the Middle East to
show growth that is sustainable, but at a
slower rate than in the last few years, hurt
by uncertainty and political crisis in
markets such as Egypt and Syria.

Reuters reported that the United States
automaker temporarily closed its Egyptian
assembly plant outside of Cairo last month,
and shut its local office, after deadly
clashes between security forces and
supporters of ousted president Mohamed
Mursi.

It later reopened them but was still
monitoring the situation closely.
"For the entire Middle East market we see
growth continuing. Maybe not at the rates
at which we been growing over the past
few years of seven to nine per cent but still
a
sustainable growth at four to five per
cent," John Stadwick, president and
managing director of GM in the Middle East
told reporters at a media gathering.

A growing youth population with rising
incomes, and high oil prices mean growth
would continue despite deteriorating
conditions, he added.
Syria may face military action by the
United States and France while street fights
continue to rage in Egypt after the military
ousted a Muslim Brotherhood government
in a violent coup in July.

Stadwick said GM's Egyptian business
would still exceed the sales forecasts.

"We do see a downturn in our regional
business so far. We'll get double digit
growth (at GM in the Middle East) year-
over-year," added Stadwick. He gave no
comparison for GM sales in the region.
The US carmaker has shifted focus from its
home base and is eyeing a larger presence
in emerging markets as well as the Middle
East.
GM's Chevrolet gets about 10 per cent of
market share in the Middle East and the
company is looking to invest in the region
to grow this share, Stadwick said.

"In the Middle East there are a million
people coming into market every year, 60
per cent under 30 years of age. That's why
this is an invest(ment) market. General
Motors is going to invest here," said
Stadwick.
About 65 per cent of GM's business comes
from outside the United States with biggest
markets
being Brazil, China, Mexico and
Russia.

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