Passenger Vehicle Production in Developing Country

Abstract

Due to the fierce globalization, the automotive sector and its Tier companies are being forced to spread their core competencies in other parts of the world not only in production, but also in development and marketing. It is not uncommon, however, for a mature automotive industry to depend on developing countries’ excessive growth and labor. This thesis will prove and pinpoint why Saudi Arabia should transform into a country with prosperous passenger vehicle production beneficiary for the country, its region and for the world in general. The mechanism of the automotive industry itself will serve as a means of enabling certain developing countries around the world to start developing their own industries. The study will focus on some of the specific experiences regarding the wanted settlement of passenger vehicle production in Saudi Arabia, and it will show the trends why it is beneficial for the country of Saudi Arabia, the automotive industry and for the Arabian part of the world. The significant values in the automotive industry, including time, expenditure, and society are imperative in knowing where to start the process of the automotive industry in developing countries like Saudi Arabia; as these depend on the current state of the country itself, they will be different for each developing country. One such developing country, Saudi Arabia, exports materials to companies that contribute in the development of the automotive industry. “Saudi Arabia is the world’s top oil exporter, and for years West Asia has aimed at using its abundant natural resources as a means of diversifying its economy into many varied, complex industries.” 1 Saudi Arabia may find itself with an inexperienced car industry due to the benefits provided by low electricity prices as a result of low natural gas prices, but with these benefits and other factors stated in this thesis, Saudi Arabia should become one of the best locations for automotive production. This thesis will reveal why Saudi Arabia should be a must for automotive production and for companies in this industry to move their production and development.