Recalling General Motors’ Middle Eastern misadventures.
The title of this tale is a Middle Eastern proverb, somewhat similar to our adage ‘Buyer beware’, but it expands on this in the sense that it also cautions sellers to keep an eye on proceedings at all times. On two separate occasions involving different Middle East countries, General Motors found to its cost what can happen if this advice is not heeded, dragging it into controversy and a hostile environment when the political winds changed direction.
A trade dispute between Japan and Iraq was the improbable cause of trouble for GM Canada. In 1980, Toyota was the number-one selling car in Iraq, and had been for some years. That same year, the Japanese manufacturer initiated talks with Ford about a possible joint venture. The fact that Ford operated an important assembly plant in Israel, however, did not go down well with the Iraqis, who in consequence started looking for a different supplier for the country’s official cars and taxi cabs. Continue reading “Open One Eye when you Sell, and Both Eyes when you Buy”