GM sales in Saudi market are up by 8% this year

LONDON: General Motors (GM) is planning to launch 10 new models in the region this year. In an exclusive interview with Arab News, Mario A. Spangenberg, president and managing director, General Motors Africa and Middle East confirmed that Saudi Arabia is the largest market for the company and is continuing to grow — by up to 8 percent this year so far — despite the drop in oil prices.

Chevrolet Tahoe and GMC Yukon SUVs are the best sellers in the region but an array of sedans and performance vehicles will come to regional markets this year.
Spangenberg sees a lot of potential in the Saudi market due to vast geographical area and young population coming to driving age.
These are highlights of the interview:

How would you describe GM’s performance in the region in 2015? And what is the company’s strategy in 2016?
Sales last year were on par with the previous year.
Highlights include the fact that we repeatedly broke our historical monthly Cadillac sales records, and our fleet sales were up 20 percent for the year.
2016 is going to be a very big year for GM in the Middle East.
We are introducing 10 first-ever or next generation vehicles that are designed as strong competitors in their segments.
Bringing a new, technologically advanced, stylish, and powerful lineup to the region is critical to capture the hearts and minds of customers currently in the car market.

How important is the Saudi market for the company and how did GM perform in that market recently?
Saudi Arabia is our largest Middle East market so of course, it is incredibly important to us. This is why we have created a dedicated Saudi operations unit, whose sole focus is on ensuring our Saudi dealers and customers are well supported.
Sales in the Kingdom have been solid.
Year to date sales in the Kingdom are up 8 percent compared to last year.
This has been driven largely by sales of passenger cars, which are up 35 percent.
Sales the world’s best-selling Chevrolet, the Cruze contributed to this with 32 percent growth, as did the Malibu sedan with 49 percent growth, and the Caprice large sedan which has sold almost twice as many units as this time last year.
We know that our new passenger cars will play a large role this year, such as the all-new Spark city car, which has class-leading horsepower, fuel efficiency and infotainment features.

What strategy is the company pursuing in Saudi Arabia this year in terms of training locals and new models introduced?
We continue to empower and enable Saudi locals to get involved in the auto industry, whether it is onsite with our dealers Al-Jomaih Automotive and Universal Motors Agencies (UMA), or through the Middle East Battery Company (MEBCO).
MEBCO is our Dammam-based car battery facility where we manufacture high quality, ACDelco maintenance free batteries.
We offer our local hires a number of tailored training courses that have been designed specifically for Saudi nationals.
They can access these bespoke courses and opportunities along with our other 340 training courses that are available to all dealer staff.
We will be continuing to develop further training opportunities this year.
What are GM best-selling models in the region? And what new models will be launched in the region this year?
Our top two best sellers last year were our full size SUVs: the Chevrolet Tahoe followed by the GMC Yukon.
The GMC Sierra pickup was our third best seller, the Impala full size sedan and Malibu sedan rounded out our highest selling vehicles of 2015.
This year we will be introducing ten first-ever or next generation vehicles to the Middle East market.
These include the already released, feature-packed and fuel-efficient Chevrolet Spark city car and the sophisticated, track-ready Cadillac ATS-V and CTS-V performance series.
The next generation of the iconic Chevrolet Camaro goes on sale at the end of the month and later in the year we will see the first-ever Cadillac CT6 prestige sedan and XT5 crossover, as well as the Chevrolet Camaro Convertible, Malibu sedan and GMC Acadia crossover.

Do you expect a drop in demand this year due to the decline of oil prices?
Like many industries, the auto industry has noticed a cooling of growth in recent months.
We continue to monitor the economic landscape and to adapt accordingly. We expect that this year’s launches of 10 content-packed, all-new or first-ever vehicles will continue to bring customers to our showrooms.
We continue to focus on the customer and see the ability to provide them with world-class service as a differentiator in this competitive industry.
We know that the ownership experience plays a major part in vehicle purchasing decisions so we will continue to listen to our customers, offer transparent and competitive ownership costs.

Has the dealership network expanded enough to cope with the increased sales in recent years and what further expansion is expected in 2016?
We have more sales and service locations across the region than ever before.
We do have plans underway to build new and renovate existing facilities across the region to be able to support and provide greater convenience for our customer base.

Do you see demand developing in the region for hybrid cars and possibly electric cars in the near future?
As green initiatives continue to come to the fore and as infrastructure becomes widely available, we may see an increase in demand for both hybrid and electric vehicles in some regions.
Of course, we will monitor this closely and if we see that there is a demand for these vehicles, we will be ready with the ground-breaking technologies and products GM is currently working on.

In your opinion which regional market has the largest potential for growth and why?
Saudi Arabia actually holds a lot of potential. Not only is it a geographically vast country, but it is a young country with new generations of drivers reaching driving age all the time. We are also seeing the strong emergence of the middle class is playing more of a factor in the auto industry.
Knowing the potential that this market has, we have a dedicated team whose sole focus is to ensure we’re bringing world-class products and services to the people of Saudi Arabia.

What autonomous driving features are available in 2016 GM models?
We’re excited to be able to bring so many features to the market that make driving easier and safer for our customers.
For example, many of our existing vehicles come with adaptive cruise control.
This enables the vehicle to cruise at a constant speed, but automatically slows the vehicle if necessary to ensure it keeps a safe distance from the vehicle in front.
Lane Keep Assist detects road markings and corrects the steering of the vehicle to ensure it stays within its lane, unless the driver signals they are purposely moving outside the lane.
Some of our Cadillacs come with Automatic Parking Assist — where the vehicle will parallel park itself with the push of a button.

Which GM models do you think have the best chance of growth in the region?
While our SUVs and pickups remain popular favorites, last year we saw a lot of growth in our passenger car business with nameplates such as our Aveo, Cruze and Impala.
We anticipate that consumers will continue to look for value without compromise.
Customers want the latest technology and safety features, but with greater fuel economy and low cost of ownership.