Mercedes, McLaren and Ferrari misfortunes ahead of Saudi Arabia – NationalWorld

Mercedes, McLaren and Ferrari misfortunes ahead of Saudi Arabia – NationalWorld

At the forefront of the automotive industry, Mercedes, McLaren, and Ferrari have been confronted with the misfortunes of the Saudi Arabia market. The kingdom’s economic woes have drastically hindered the luxury carmakers’ success, as the nation has been unable to secure the wealth needed to sustain the production of high-end vehicles.

The Kingdom of Saudi Arabia has been greatly impacted by the pandemic, with a rapid decline in oil prices and a slump in the global economy. The nation’s gross domestic product (GDP) has plummeted, with a projected drop of 6.8% in 2020, according to the International Monetary Fund (IMF). This has caused a shortage in the capital needed to finance the production of luxury cars.

The difficulties in the market have been further compounded by the nation’s high import taxes. The nation’s import duties on cars can be as high as 80%, which drastically increases the cost of luxury vehicles that are already expensive. This has made it difficult for automakers to compete in the market, as their vehicles are rendered financially unattainable for many.

The lack of capital and the high import duties have resulted in a significant drop in sales for the luxury carmakers. Mercedes has announced a decrease in sales of almost 10%, while McLaren and Ferrari have reported a drop in sales of more than 20%. This has had a significant financial impact on the automakers, as they have been unable to generate the revenue they had previously.

The automakers have been forced to make drastic changes to their operations in order to remain competitive in the market. Mercedes has reduced its workforce and shifted its focus to lower-cost models, while McLaren and Ferrari have looked to emerging markets to make up for the losses in the Saudi Arabian market.

The future of the luxury carmakers in the Saudi Arabian market remains uncertain. With the nation’s economic woes continuing to plague the market, the automakers may need to look elsewhere for success. However, with the nation’s strategic location and its vast wealth, the luxury carmakers may still be able to capitalize on the market’s potential.