JEDDAH, 19 February 2005 — General Motors intends to establish a campus to train young Saudis. Using the theme of the Jeddah Economic Forum — “Capacity building: Developing people for sustainable growth” — as the context, Jim Cnossen, GM’s marketing director for Africa and the Middle East made the announcement on Wednesday.
With over $6 million already invested in training in the Middle East, Cnossen said that GM’s long association with the Kingdom and the company’s increasing presence in the region made now the ideal time to commit to Saudi Arabia. “It is part of our payback to the Kingdom and part of our core commitment to being a good corporate citizen in the region.”
GM, as main sponsor for the JEF this year, chose the forum to demonstrate their involvement in the Kingdom’s future and announce their intent to establish the GM campus.
“With the demographics the way they are — 65 percent of Saudis under the age of 25 — we know we have to support those young people.” He said they would need jobs; offering training dovetails with staff needs that stem from the growth of GM dealerships in the Kingdom.
The campus is part of GM’s long-term vision to have a GM University in every major market in the Middle East. Local dealership networks and government institutions provide the support.
Last December Rick Wagoner, GM’s chairman and CEO, signed an agreement to establish a campus at Dubai Men’s College with the Dubai Minister of Education. GM has also invested $60 million in an ultra modern parts distribution center in Jebel Ali, Dubai.
The programs offered to entrants in the Saudi Campus would vary from short two to four month courses aimed at entry level technicians to full automotive apprenticeships.
“Developing people in Saudi Arabia is a priority,” said Cnossen. “Currently we have no plans for a full-scale assembly plant, but we are keeping our options open. Our battery factory here is the No. 1 producer in the region. It has worked with batteries; we should look at other components.”
Cnossen thought that training to support parts and supply was the major task. “We are also looking at options to source parts locally.”
GM products are of the fabric of modern Saudi life — from their appearance in 1907 through several generations of Suburbans and Caprice to modern Cadillacs and Hummers.
Last year alone, GM sold 90,000 vehicles in the region and has seen a $95 million investment from retailers. “In Saudi Arabia alone,” said Cnossen, “GM sold 45,000 units — an increase of 45 percent over the previous year.”
Recently GM introduced compact models that appeal more to the youth market, reflecting the Kingdom’s demographic makeup and pocket.
Cnossen added that GM’s commitment to the Kingdom was stronger than ever and saw the campus as helping to create a pool of trained and qualified management, technicians and retail staff. “It integrates well with our Saudization program, the expansion of Saudi retailers and will help ensure our long term success in the market. It’s a win-win deal.”
