Saudi spare parts dealers fear losses
Dealers and importers of spare parts for used cars in the Kingdom of Saudi Arabia are likely to incur substantial losses of up to a few million riyals in the near future, reported Al-Watan newspaper. Many in the industry may be forced to liquidate their businesses as a result.
This anticipated crisis is precipitated by a decision of the Saudi Customs Authority to bar spare car part importation to the kingdom. The new regulation came after the discovery of Japanese car parts containing lubricated oils that interfered with the performance of customs inspectors checking the products.
The use of second-hand spare car parts is quite common in Saudi Arabia. This is due to the substantial price difference between the cost of used and new spare car parts, ranging from approximately 50 percent to 70 percent of the product value.
Saudi spare car part dealers were reportedly shocked by the decision and declared that it was “unfair,” especially since they received no prior warning about it. — (MENA Report)
© 2001 Mena Report (www.menareport.com)