Interview with John Stadwick, President and Managing Director, General Motors Middle East Operations
Another in our series of interviews with senior car guys about the state of the industry as we head into 2012
By Shahzad Sheikh
Q. Whilst initial expectations for 2011 were optimistic, it appears to have been a case of a stalled recovery with political unrest across the region, a natural disaster in Japan severely impacting the car industry, and fears of a double dip recession causing buyers to put off purchases. Now in the final quarter, do you find things are better, worst or about what you expected for the year?
While there were a number of incidents globally and regionally that could have impacted our performance, our sales have been very strong. In fact, September 2011 marked the twelfth-consecutive month of double-digit growth in the region, with the third-quarter representing a commendable 21 percent sales growth for General Motors Middle East. We are determined to continue along this path and are looking forward to a strong finish by the end of the year.
Q. What changes in strategy, if any, did you have to employ to cope with the changing situation and unsettling events of the 2011?
With respect to the incidents in Japan, GM’s vehicle production was minimally impacted. We have made adjustments globally as needed, including optimizing the usage of parts in short supply, modifying manufacturing schedules and temporary production suspensions. We are confident that it will not have a material impact on our full-year sales. As for the region’s unrest, this has minimally affected our sales, given the relatively small size of the markets impacted by these events for General Motors.
Our strategy for 2011 has not changed we remain committed to providing our customers with the best shopping, buying and ownership experience in the region.
Q. In the retail environment in the UAE what have been the major developments this year, particularly in light of the new finance rules requirement buyers to have a minimum 20% deposit on new car financing
First let me start by saying that GM and its dealers welcome the new regulation set by the central bank on lending as it will benefit the economy and the consumer over the long run. Initially, we saw a 15-20% drop in sales affecting mainly the individuals with low income. Today customers are coping with the new lending regulation and the impact on sales has been limited.
Q. Has there been any apparent shift in the demands, needs and requirements of customers? Are they buying more used cars, are they chasing more incentives, are they negotiating more, are they playing hard to get?
Customers the world-over, not just in the UAE, are becoming more discerning by demanding the best products and world-class customer experience at great value.
That’s why our business model places the customer at the center of everything we do. Our recently launched models have received more than 600 awards worldwide. Our focus will remain on offering customers great looking cars with outstanding value, performance and reliability.
When it comes to enhancing the customer experience, in 2011, we’ve refurbished and built 31 new sales and service facilities and plan to invest in another 35 facilities in 2012.
Q. Is new product still helping you to get customers into the showrooms?
This year we’ve launched 7 new vehicles. The combined sales of GM’s most recently launched models –– grew by 25% percent September year-to-date compared with the same period last year. This has helped us bring in not only repeat customers but also new customers to the GM family.
Q. Have you had to work harder at marketing your products and brand this year? What’s been the most effective way to deploy your advertising spend this year?
Our approach to marketing has been business as usual, as we’ve launched new cars, and our sales results for new vehicles speak for themselves.
Q. Looking ahead, what are your realistic expectations for 2012?
We are anticipating an industry growth of about 8 percent for 2012, and with the new products we plan to launch in 2012, we are very confident that we will exceed the industry growth.
