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New Hyundai Dealership Opens in Baghdad amid Recent Violence

Hyundai is the First New Car Retailer in Iraq since 1968

So you think the North American market is volatile? How about opening up a new dealership in a war zone?

Such was the case just over a week ago when an independent Hyundai retailer opened Iraqs first new car dealership since Chevrolet bowed out when the Baath Party took over in the fall 1968. Iraqis didnt go without cars, but rather than the variety the country once enjoyed independent dealerships were shut down and the government sold all new cars through state warehouses - so much for the glitz and glamour of the car business.

Saddam Husseins government worked out deals with its allies, with cars from Russia being among the more common imports.

Assistant sales manager Nihad Abdul shows off Baghdads first new car showroom since 1968. Al-Kasid is the official retailer for Hyundai Motor Company in Iraq. (Photo: Reuters/Laszlo Balogh)

Baath Party officials and Saddams insiders and family had more choice mind you. For instance Saddams late son Uday drove Ferraris and Porsches, another fine example of totalitarian rule being for the people. Baath guards incidentally reported that the deposed dictator sprayed Udays car collection with bullets while enraged at his son for insulting his uncle Barazan.

After the war Iraqs borders opened to what Reuters Khaled Yacoub Oweis

With the economic embargo lifted, there is once again an open market for new and used cars. (Photo: Reuters/Laszlo Balogh)

reported as hundreds of thousands of used cars, but despite the influx the countrys pre-owned market remains massive now that the 1990 through 2003 economic embargo has been lifted and money is once again flowing.

Although the war is "over" there is little doubt the dealer principal hardly could have expected the recent escalation in violence, not a particularly stable environment to conduct business. Nevertheless most North American dealerships would be overjoyed to experience anything near the Baghdad retailers initial success, selling nearly 40 cars within the first week.

"We have sold 38 Hyundais

The new dealership sold close to 40 cars in its first week, although understandably none have been flashy coupes. (Photo: Hyundai Motor America)

already, but no coupes," commented Nihad Abdul Rahman, assistant general manager of Al-Kasid, exclusive agents for selling Hyundai Motor Co. cars in Iraq, in reference to a red Tiburon sports coupe displayed in the showroom. "They are considered too flashy in these circumstances," he added.

No doubt most Iraqis are just happy to have access to simple transportation, many of whom lost their cars in the altercations. After all, with gasoline only costing about a penny per liter and prices for new vehicles lower than most anywhere else in the world Rahman and his Hyundai dealership should succeed.

"Iraqis are looking for something affordable and reliable, and Hyundai fits the bill," Rahman said after closing a deal with retired officer Khalaf

"Iraqis are looking for something affordable and reliable, and Hyundai fits the bill." (Photo: Trevor Hofmann, American Auto Press)

Ganabi for a $10,200 Elantra. Happy with his purchase Ganabi said, "I have not had a new car since the 1960s."

The two-story dealership is in a better part of town, next to the upscale German embassy. It sells a full range of Hyundai models, from the racy coupe at $17,500 down to the subcompact Getz at $7,200.

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