Saudi firm to install plant to assemble Chevrolet cars in Pakistan

ISLAMABAD: Mohammad Abdul Razak, chairman Nexus Automotive Limited, Tuesday said that with the corporation of Saudi Arabia-based Balubaid Company, the Nexus Automotive would install a motor assembly plant of General Motors (GM) to assemble Chevrolet vehicles in Pakistan next year.

Mr Razak, a former employee of General Motors of USA, said this while addressing a press conference after meeting with the President Pervez Musharraf. Sheikh Umer Balubaid, chairman Balubaid Company, was also present in the meeting.

Mr Razak said that locally assembled four models of Chevrolet would be in the market after 18 months from now. Two models each of 800cc and 1000cc would be assembled initially.

“The initial investment is estimated to be around $ 15 million with equal stake of both the two companies, Nexus and Balubaid, for which we have given our commitment to the president.”

“We have reached an agreement with the Ghandhara Motors, the Nissan manufacturers in Pakistan for using their plant to assemble Chevrolet vehicles,” he said and added: “we have offered them a fee for using their facility, which is currently being modernized, and revamped to bring it to GM standards and requirements worldwide.”

However, Mr Razak said if the market response comes in favour of Chevrolet vehicles the company would be looking for setting up of their own plant.

“President Musharraf has granted full support of the government of Pakistan and urged us to set up a full fledged plant here in Pakistan for which he has consented to give land for free,” Mr Razak said.

He maintained that but before we go for our own set up we need to see the market capacity and the provision of parts etc. for starting production of Chevrolet vehicles from our own set up.

“We would use Ghandhar Nissan plant for the assembling of these four models and the first lot of the vehicles to be rolled out of the plant would be supervised by the engineers from the General Motors, and the parts which would be bought from the local vendor industry would be tested here in Pakistan and in GM laboratory in US for their quality before they are used in the assembling of the Chevrolet vehicles.”

He said the initial capacity of the plant would be to roll out 1000 vehicles per annum and create around 1,000 job opportunities at the plant initially.

Focus on small cars: He said that they have targeted the small vehicles considering the market demand of small vehicles in Pakistan, which is now around 65 percent of total locally assembled small vehicles having engine capacity of 800cc and 1000cc.

Mr Balubaid, while appreciating Pakistan government’s response and President Musharraf’s encouragement, said that Pakistan is a land of business opportunities not only in auto sector but in other sectors as well, and the Balubaid group looks Pakistan as a potential place of investment.

“The market and demand is there for cars, and with the support from GM of USA, and Chevrolet already a big name worldwide, we look for a good business opportunity in auto assembling sector,” Mr Balubaid said.

To a question about the price of the vehicles, Mr Razak said the market would determine when we roll out our vehicles from the plant but assured that the prices would be competitive with the already vehicles of other brands in the same engine capacity being manufactured in Pakistan.

“We guarantee the quality that is the landmark of the GM company worldwide,” he said.

Mr Razak said that they would not be here to play games and we believe in deliver more than the customer demand. “There would be no long waiting period for the delivery thus not allowing the menace of premium, for which we would be carefully assigning our dealerships in the country.”

He said that one of the car (Chevrolet Exclusive 800cc) was already introduced in the Pakistan market after we imported some 900 completely built units (CBUs), and after the road test of about 4000 kilometers of the 1000cc Chevrolet in Pakistan we would see if it meets the requirements of the local customers we will bring four models two each of 800cc and 1000cc in the market. —Staff Report

http://www.dailytimes.com.pk/default.asp?p...0-6-2004_pg5_17

This is great news! With BMW also coming to Pakistan (soon), the choice for a consumer would increase with him having to choose from cars of almost ten different makes. Good stuff!

Good for competition.