Newsletter No. 991
News-Analysis
April 24, 2008

 

ISUZU MAY ESTABLISH THE FIRST AUTO-MAKING PLANT IN SAUDI ARABIA

On the 21st Japanese truck maker Isuzu Motors told the press that it was considering becoming the world’s first automaker to establish an auto-making unit in the Kingdom of Saudi Arabia. Isuzu spokesman Tadashi Ioka said, “We are talking with a local company… When entering a new market, we often first outsource production to a partner, but a joint venture is also an option.”

The idea is to build about 2,000 to 3,000 midsize to large trucks per year in the kingdom. Production could begin as early as next year.

In 2006, Isuzu exported about 33,900 trucks to Saudi Arabia. With higher oil prices bringing money pouring into the Gulf States, this new initiative is Isuzu’s attempt to take advantage of the current global economic trends.

METI MINISTER AMARI MEETS SAUDI OIL MINISTER; GETS NO RESULTS

On the sidelines of the International Energy Forum meeting in Rome on the 20th -- the day before his meeting with Iraqi Oil Minister Husain al-Shahristani -- METI Minister Akira Amari met with Saudi Oil Minister Ali al-Nuaimi. They discussed the issue of the record-high global oil prices, but were apparently unable to decide on any specific measures to take. Al-Nuaimi did promise to do his best to ensure that sufficient quantities of oil are available, but also said that he felt that there was already enough oil on the market and that he wasn’t considering raising oil output.