Detroit Motor Show signals bright year for the Middle East

The North American International Automobile Show is the global industry's annual showcase. Here is where the new models are unveiled for the year ahead. Here is where the industry gossip whispers about winners and losers. This is the best place to find out what the future of the regional industry will be, even for somewhere as far away from Detroit as the Middle East.

In a global economy this is not so surprising. General Motors' current 110-week stockpile of cars - compared with the industry average of 88-weeks -means that the booming Middle East can expect to see a lot of low-priced inventory coming to the region. The cause may be in the United States but the impact is still felt in the Middle East.

Likewise the roll-out of new models at Jeep, Chrysler, Dodge in the USA means that the number of models on sale in the Middle East can double from 11 to 22. Without this feature of the super-competitive US market customers in the Middle East would be more restricted on choice.

The only caveat is that many Middle East new model roll-outs are often somewhat behind the curve. For instance, the new Jeep Grand Cherokee is already a hit in the US but will not be in Middle Eastern showrooms until May. Similarly Middle East buyers will have to wait until later in the year for the exciting Dodge Charger US muscle car which went on sale this week in the USA.

However, almost all global car manufacturers now see the Middle East car market as one of the best opportunities for the next few years, aside perhaps from Russia; even China is seen as a bit of a busted flush these days. Thus fast-talking car executives grin very broadly when you say that you are from the Middle East.

Business is business, and ambitious sales targets abound. DaimlerChrysler is on a 50% growth track to 30,000 units over the next three years, while General Motors has declared its aim of 200,000 sales, up from 100,000. In the case of GM a very clear strategy of widening its range in the Middle East is already paying off.

For regional consumers this promises to be something of a golden age for motoring. Manufacturers will be investing heavily in new showrooms and service and maintenance facilities, and a far greater variety of cars will be available tuned to Middle Eastern specifications, and at very low prices.

How long will this last? It is hard to say but the economic boom in the Oil States itself justifies this investment. However, if the developed economies' GDP growth picked up speed then the car manufacturer's attention might shift elsewhere.

But for the meantime, with high oil prices threatening continued economic recovery, the Middle East and fellow oil producers like Russia are the focus of attention for the motor trade as never before. Middle East drivers have never had it so good!