GM looks to build on Middle East record

US carmaker General Motors achieved record sales in the Middle East in 2008, even though the financial crisis halved its potential growth. Sales rose by 6% year-on-year (y-o-y), led by the company's large SUV range. The full-size SUVs of all of the group's brands - the Chevrolet Tahoe, GMC Yukon and Cadillac Escalade - combined to register sales growth of 30%. With a further accent on the premium end of the market, the Cadillac brand grew by 21%, largely thanks to the launch of the new CTS model.

By market, Saudi Arabia is still GM's largest market for sales, although growth in 2008 was the lowest in the region at 2%. The strongest growth came from Lebanon where sales rose by 81%, while sales in Iraq were up by 27% y-o-y. Oman and the UAE registered growth of 27% and 19% respectively.

According to GM Middle East President Mike Devereux, regional sales for the first 10 months of 2008 suggested that growth of 13% was attainable. However, the impact of the financial crisis reduced growth in the last two months of the year.

GM is remaining positive and looking to build on the growth it did achieve, by sticking to its programme of new launches in 2009 and developing its customer services. The Chevrolet brand will be expanded with the addition of the Traverse crossover, the Cruze compact and the Malibu and Camaro in the mid-range segment. Cadillac will build on the success of the CTS with a new CTS-V, as well as a Platinum Edition of the Escalade. The GMC brand will add the Sierra Denali and the H3T will join the Hummer line-up. This suggests that despite the economic slowdown, there is still a focus on the premium segment, where credit is less of an issue.

At a time when GM is looking to secure its long-term viability, the Middle East is providing one of the more hopeful avenues. Sales outside of the US now account for 60% of total sales, compared to between 35% and 40% four years ago. Although the Middle East accounts for just 2% of global sales, the region's business has tripled over the last seven years, according to Devereux.

Source: autosinsight.com