Chrysler marches on Iraq

It could hardly be said things are all peace and tranquillity in post-Saddam Iraq. But that doesn’t mean there are no ambitious individuals stepping in to help normalise business in a country with a population of more than 30 million and a growing thirst for consumer goods.

Among these is former Chrysler sales chief Gary Dilts who, along with business partner and long-term US resident Shakir Alkhafaji, has literally bitten the bullet and initiated the opening of two foreign bank-financed dealerships in Iraq. Both have reportedly been built to the same specifications required of dealers in the US.

Although it is generally conceded that Chryslers could have literally been sold out of a trailer in a country rediscovering its appetite for consumer goods after years of economic sanctions, Dilts and Alkhafaji clearly saw a potentially prosperous future for any operation game enough to make an early, professional entry into the Iraqi new-car market. That’s about where it ends though.

There’s no surprise that trading and general operating conditions are different to what you would expect in downtown Pleasantville, USA. According to a report by news website Automotive News, armed guards protect the facilities around the clock, as well as the staff travelling to and from work.

And financial transactions are more straightforward than your regular western-world financial deals – all vehicles are bought with cash. That’s not to mention difficulties insuring inventory – with the country still a hot-spot rife with violence, kidnapping and theft, it simply isn’t possible.

The Baghdad showroom has been damaged numerous times by shock waves from nearby bombs. These things are naturally reflected in vehicle prices, although the Baghdad dealership is fortunately located in the middle of one of the city’s most affluent areas more able to accept the added impost.

So far, Dilts and Alkhafaji’s venture, Veritas Automotive and Machinery, has two outlets in Iraq – one in Baghdad and one in the northern city of Erbil. Apparently there are plans to open a third in the southern city of Basra.

And Chrysler has a star car in Iraq – the Dodge Charger, which is “hugely successful” to the extent that it may well sell in greater numbers than it does in US dealerships. The Charger has been dubbed by Iraqis as the “Obama”, after US president Barak Obama.

Chrysler certainly won’t be the only international car-maker to be represented in Iraq in time. GM, Ford and Volkswagen are reportedly looking at setting up shop there in the future.

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