Backed by the world's fifth-largest oil reserves and a population bigger than Saudi Arabia's, Iraq is attracting the attention of global automakers including General Motors Co., Ford Motor Co. and Volkswagen Group. Western cars were shut out of the Iraqi market by sanctions during the Saddam Hussein era. The lack of modern vehicles is evident in the survival of many VW Passats that were shipped to Iraq from Brazil between 1983 and 1990 in exchange for oil.
Now rising incomes and declining violence are fueling demand for a middle-class lifestyle that includes autos after years of conflict following the U.S.-led invasion that ousted Hussein's regime.
Read Article