JEDDAH, 12 July 2005 — General Motors (GM) Middle East has continued with its exceptional sales growth in the second quarter of 2005. June has remained its 20th consecutive record month with sales of 11,913. Sales for the second quarter were 30,502 units, an increase of 39 percent over the same period in 2004.
With Q2 record performance building on the strong results of the first quarter of the year, GM has recorded 37 percent growth in sales across the region over the 2004 performance for the first half of the year, representing total sales of 52,183 units.
GM’s performance in Q2 of 2005 has been led by strong results across almost all markets, including the key market of Saudi Arabia, which witnessed a sales increase of 91 percent over the same period in 2004.
“Our success is driven by the outstanding performance of some of our most significant markets, such as Saudi Arabia, which represents 69 percent of our regional volume,” Terence B. Johnsson, managing director of GM Africa & Middle East, told a press conference at Jeddah Hilton yesterday. “Our growth highlights the leading position that core GM brands have historically occupied in the hearts and minds of Saudis. At the same time, it demonstrates the growing strength of a new generation of customers who are finding an answer to their automotive needs in a GM vehicle.”
Asked whether GM would start working independently after the Kingdom joins the World Trade Organization (WTO), Johnsson quipped with an emphatic “No.” In fact, he paid tribute to GM dealers — Alissa Automotive Company, Aljomaih Automotive Company, Omar Balubaid, and Universal Motors Agencies - for their role as the company’s effective partners in Saudi Arabia. He said there would be no change in the GM policy and partnerships would continue in future. The success of Chevrolet and GMC brands, was a key driver of 2005’s regional results for this quarter. Total Chevrolet sales are up 24 percent regionally with a massive 99 percent increase in the Saudi market over Q2 results of last year. GMC sales recorded a 96 percent increase on those made in Q2 2004. The Chevrolet brand took out seven places in GM’s top 10 list of best selling models for Q2 2005, confirming its role as the brand that offers a solution to every automotive customer.
The Chevrolet Caprice and GMC Suburban are top sellers for the quarter, increasing in volume by 25 percent and 66 percent respectively over sales in the same period of 2004 for the region and by 61 percent and 69 percent respectively in Saudi Arabia alone. “Both models are historically very strong performers in Saudi Arabia, further proof of the unique relationship that the Saudi people enjoy with GM’s brands,” Johnsson said.
In the premium segment, the Cadillac brand continues its upward performance with regional sales rising 23 percent in Q2 over 2004, particularly augmented by the strong success of the Cadillac STS, which has recently arrived in the showrooms.
“Luxury car owners demand a truly outstanding car buying and ownership experience and we have invested time and money to ensure ‘total peace of mind’ is the reality of driving a GM vehicle,” he said. “We continue to improve all areas of our customer ownership experience, starting with products engineered for the Middle East, testing and in-region validation. The last quarter saw us launch the HUMMER H3.”
Significant resources have been devoted to the in-region validation of GM vehicles, which are all built to SASO standards. GM and its dealers are investing heavily in Saudization, especially training and employing Saudi nationals across all levels of the business.
“The key to our success in Saudi Arabia is our close relationships with the local community and government authorities,” said Johnsson. “To enhance our support to the local community, GM and its dealers are currently working with the General Organization of Technical Education & Vocational Training to roll out a number of programs designed to support training and hiring of locally-trained Saudis, in all the different areas that make up this industry - from sales to maintenance.
“Due to be launched in the third quarter of 2005, the vocational training facility will be certified by General Motors University. This institute will provide training to Saudis to fulfill future placements and help GM dealers keep up with the growth in the business requiring more Saudi talent,” W. Joseph Elenz, after-sales director, GM Middle East, said.
To further boost GM’s role in the region, Johnsson also announced the appointment of Adnan Alkhamis as manager — strategic initiatives, Saudi Arabia.
Samir (Sam) Homsy, regional manager for GM Africa & Middle East, said “The quarter’s outstanding results, both in terms of market growth and model performance, are confirmation of the success of GM and its Saudi dealers’ continued strategy of re-investing in the Kingdom. In recent years, GM dealers have worked to open more showrooms and service contact points for greater ease of purchase and after-sales service for GM customers in Saudi Arabia.” In 2004, GM sold around 89,000 vehicles in the Middle East, representing a 55 percent increase over 2003, and the company continues to introduce pioneering programs in the region.
Saada Hammad, regional communications and public relations manager GM Africa & Middle East, coordinated the question-answer session in English as well as in Arabic.