General Motors sales in the UAE up by 31% in first nine months of 2008

UAE. Sales of General Motors (GM) vehicles in the United Arab Emirates in the first nine months of this year are up 31% on the same year of 2007 according to figures released by the company today, reinforcing the Emirates’ position as GM’s second largest market in the Middle East after Saudi Arabia, with total sales of 17,789 units.

GMC continues to forge ahead as the company’s best-performing brand, with year-on-year sales up by 67% to just over 4,000 units. This growth was mainly attributed to the continuing popularity of the full-size SUVs, the Yukon and Yukon XL, with 1,913 units sold, as well as the impact of the Acadia luxury Crossover SUV, which recorded sales of 854 units.

Chevrolet, GM’s foundation brand, experienced an increase in sales of 20%, to 11,795 units, while the Premium brands of Cadillac, HUMMER and Saab registered growth of 15%. The full-size SUVs – the Chevrolet Tahoe and Suburban, GMC Yukon and Yukon XL, and Cadillac Escalade – were the biggest sellers, at 4,404 units, while the Chevrolet Epica was second with sales of 2,045 units.

At a press conference held in Beirut, Lebanon, to announce General Motors’ quarterly business results in the Middle East, Terry Johnsson, President of General Motors-Middle East Operations, said: “It is extremely rewarding to see that the General Motors line-up is attracting customers across the region and in the UAE in ever-increasing numbers, as demonstrated by these latest results.

"At the same time, we acknowledge the commitment and effort of our esteemed dealers - Al Ghandi Auto, Bin Hamoodah Auto, Gargash Motors & General Trading and Liberty Automobiles Co - in making this success possible.

“Looking forward, there are exciting times ahead for GM, with models such as the Chevrolet Traverse and Cadillac CTS-V, Hummer H3T and Sierra Denali just around the corner, and equally highly anticipated models such as the Chevrolet Cruze and Camaro set to arrive next year. GM really grabbed the headlines on September 16th, our 100th anniversary, when we announced our vision for the future by unveiling the production version of the Chevrolet Volt.

This extended-range electric vehicle is set to rewrite automotive history and revolutionize the way we travel.”

At the same time, GM announced a new Middle East sales record for the first nine months of the year, with its sales in the region up by 13% to 111,944 units compared to the same period in 2007. This success can be attributed to three key factors: increasing demand for the company’s full-size SUVs, a huge rise in sales for GMC and the growing popularity of the GM brands in the Lower Gulf and the smaller markets.

GM’s best-selling models across the Middle East continue to be its full-size SUVs - the Chevrolet Tahoe and Suburban, the GMC Yukon and Yukon XL, and the Cadillac Escalade – with sales up by 38% over the first nine months of 2008.

At the opposite end of the size spectrum, and reinforcing GM’s reputation for offering great value cars, the fuel efficient Chevrolet Aveo and Optra models occupy second and third place in the sales chart.

With year-on-year sales up 41% on 2007, the GMC brand continues to go from strength to strength. Combined sales of the Yukon and Yukon XL are 37% to 22,535, while the GMC Acadia luxury Crossover SUV, in only its second year on sale in the Middle East, has sold 4,725 units, firmly establishing it among GM’s top ten best-sellers. The arrival earlier this year of the all-new compact SUV, the GMC Terrain, has stretched the appeal of the brand to a new breed of customers.

Combined Cadillac, Hummer and Saab sales are up 21% over the first nine months of 2007.

Cadillac’s award-winning, all-new CTS luxury sedan and Escalade luxury SUV have strengthened their appeal among premium brand customers, with big year-on-year increases. A 56% increase in sales of the rugged Hummer H2 and a 21% rise for the Saab 9-3 are further proof of the all-round appeal of GM’s Premium Brands.

Chevrolet has also performed strongly in 2008, with sales up 3% to 71,035 units, around two-thirds of all GM sales in the region. The best-selling Tahoe and Suburban full-size SUVs recorded combined sales up 42% on last year.

Chevrolet’s Aveo, Optra and Caprice models occupy second to fourth place in the GM best-selling list, while a 27% rise in demand for the Epica has helped it to jump into fifth place.

Across the region, GM also recorded some outstanding sales increases in Lebanon, (up 111%), Oman (up 43%), Iraq (up 21%), Kuwait (up 18%), Bahrain (up 17%), Saudi Arabia (up 8%) and Syria (up 6%).

Source: BI-ME , Author: Justin Smith

US EXPORT COUNCIL PROVIDES ASSISTANCE TO US COMPANIES SEEKING ACCESS TO HIGH GROWTH MARKETS OVERSEAS. http://usexportcouncil.com/

Strong economy woos professionals from West to UAE

A shortage of skilled manpower in the GCC construction industry is attracting civil engineers and architects from countries where unemployment is growing due to the economic slowdown.

The arrival of skilled professionals from the US, UK, Canada and Australia represents a major turnaround as firms in the region were previously chasing too few candidates. 

Emirates Business spoke to industry experts who all felt that the economic slowdown of the global economy would stand to benefit the UAE's construction industry.

The problems faced by the US housing market is creating unemployment, with the construction industry releasing a higher percentage of employees than other sectors.

Between July and August large US construction firms including KB Home, Toll Brothers, Hovnanian and Lennar have axed 8,000 jobs.

"A year ago it was difficult to recruit good experienced engineers," said Stewart Corner, consultant Engineer working for Australian company Webb & Erbas UAE, which has formed a joint venture with an Abu Dhabi investor to expand in the region.

"More and better specialists are available in the market. The job market has changed and salary levels are coming down. An experienced Australian engineer can earn $100,000 (Dh367,319) a year in the UAE now, two-thirds of the salary he would have earned at home. Corner said the property developments in cities such as Abu Dhabi are sustainable because of good oil revenues and government support to big projects.

"We expect to grow by 50 per cent in the first year. Several Australian companies are entering the UAE and other Gulf countries now," he said.

According to Natasha Gangaramani, Director of Al Fara'a Properties the number of applications from UK and the US has increased over the last two weeks.

"It has been a challenge to recruit good staff but during the last two weeks we have been getting calls from good talent in the UK. If I am not mistaken, the trend will not just be limited to the construction and property market. Job applicants to all other sectors will increase and more people will be looking for opportunities here," said Gangaramani.

She said that global businesses will be looking towards the region and especially the UAE to do well. "People are expecting this region to do well and overcome the crisis. It is tax free and a launch pad for people who want to start fresh," said Gangaramani.

Carol Milne, a consultant at the Ontario Ministry of International Trade and Investment's GCC office, said several Canadian companies were looking for opportunities in the Middle East.

"Property prices are dropping in the US and in some parts of Canada," she said. "In Ontario, the market is stable but it is not growing as it did before. Our construction firms are very international in outlook and the province has cross-border trade and investment links with the US."

William Buck, International Director, Macdonald and Company, a recruitment consultancy, said: "In the past it was a challenge to recruit candidates from the US. But our recruitment agency has been receiving a lot of calls from the US ever since the economy started to slide."

According to Buck, there is still much demand for qualified and good development surveyors and project managers in the UAE. "There is a lot of scope for facility management professionals. Just about 12 to 18 months ago nobody had bothered much about facility management as it was not much in demand here," said Buck.

According to him, there is movement of labour within the UAE itself as more professionals are opting for Dubai compared to other emirates.

According to him because of the availability of all sorts of candidates coming in to the market, other GCC nations like Bahrain, Saudi and Kuwait have been able to attract candidates. It is good news all round for property and construction companies in the region."

Marc Palermo, Regional Sales Director working of US real estate company SHVO, said: "More and more professionals from the US are coming to the Gulf in search of jobs.

"US firms are releasing even experienced senior staff. Growing unemployment in the US and better living standards here are among the factors that are attracting construction professionals to the Gulf."

Khalid Said, a Palestinian architect had been living in Germany, said he has come to the UAE seeking new opportunities. "A number of German engineers and architects are leaving because there is an economic slowdown and only large firms that are capable of undertaking major turnkey projects can get work. "The Middle East is a good option for me because I can speak Arabic and German."

Thomas Brink, Vice-President of US-based engineering firm RTKL, said the company had stopped recruiting and was relocating staff to the Midle East.

"Due to the slowdown in the US, work on some of the anticipated projects there and in China did not start," he said. "Our company is based in Texas, which has a strong economy because of oil. However we have seen some senior US professionals seeking better prospects in the UAE."

But Phil Starr, Recruitment Director at RealHR Consultancy and Recruitment has warned that although well qualified, applicants from these particular regions would still lack the project experience required for the projects found in Dubai and Asia alike.

"We have seen a definite increase in the number of CVs coming from the UK and US. The most noticeable change will be at a supervisory level and below. It's likely we will start to see a shift towards the eastern European labour market due to the decline in the construction industry throughout the UK and the rest of Europe," said Starr.

Macdonald's Buck also noted that the new rush of employees into the UAE and GCC market looking to get hold of jobs at any cost would have an impact on salaries. 

Although salaries across the GCC, especially in the UAE, have been rising significantly over the last few years, the trend will not continue at the same level.

By Joseph George and VM Sathish  on Tuesday, October 14, 2008

Business24-7.ae

US EXPORT COUNCIL PROVIDES ASSISTANCE TO US COMPANIES SEEKING ACCESS TO HIGH GROWTH MARKETS OVERSEAS. http://usexportcouncil.com/

UPS to leverage IT for UAE expansion

While some logistics companies are already feeling the pinch of the US economic slowdown, others especially those operating in the Middle East are unsure how their operations will respond. John Tansey, UPS General Manager in the UAE, spoke to Emirates Business about the company's performance, balancing a regional logistics industry boom with the economic slowdown affecting its home country.

Being a US-headquartered company, how are the global operations of UPS likely to be affected by the current economic slowdown in its home country?

The situation is still unfolding and therefore it would be unfair for me to comment on behalf of UPS until we are certain of the direction this will take. But UPS has been in business for 101 years and because of this it has experience of market downturns and upturns and the irregular performance of markets. We measure our business carefully and are in touch with our customer base. We ensure that we manage the business appropriately. It is also true that the financial situation in the US is likely to have an impact on the industry generally, but it is too early to estimate the magnitude of that impact.

The logistics market in the UAE has become more saturated as more local and international players have entered the industry. What competitive advantage do you have over other players?

UPS is part of local, regional and global markets where competition has always been a key element. Competition has led to more innovation and investment in value additions for our customers. We have streamlined our regional and global networks in order to provide customers with a one-stop complete supply chain solution for the movement of their goods. A customer has flexibility in terms of choosing which type of transport to use since we operate through various transportation modes. We also have the ability to introduce our clients to new markets that are part of our global network since we offer the same level of service wherever we operate.

Companies like yours are focusing on IT solutions as a way of retaining customers. What steps is UPS taking in this direction?

UPS globally invests $1 billion (Dh3.67bn) every year in improving information technology as the best way to add value to our services. We believe in visibility by giving people access to the movement of their packages. We inform the consignee about the status and delivery of goods. We believe IT solutions help to ensure reliability and any investment in this direction will help to broaden our customer base both locally and globally.

Do you have any immediate plans to expand your facilities given the increasing demand for logistics services in UAE?

We have a robust operation capable of handling the expansion of the customer base and the growth that will come from this market. Our current facilities and structures can handle good levels of growth from this market. However, we will be working on expanding our services.

We want to expand and improve our online service to allow more visibility since it is becoming more popular. This will help to increase our footprint in the market. We have also introduced import tariffs, where customers are able to learn about the import tariffs of any product in their countries and based on that we can negotiate the pricing for the consignment.

UPS announced 28 per cent growth in global revenues for its Q2. Do you see this being reflected in the UAE?

What we see in the UAE is a market that has been positively influenced from a growth perspective in a number of sectors, for example finance, free zones and construction. UPS sees growth from its small and medium-size customers and its global customers have entered this market. We have seen double-digit growth in our business here across all the products and we expect the same to happen over the next few years.

There has been a general outcry about shortage of qualified staff in the logistics industry, how has this affected your operations?

What the industry is facing is a lack of qualified people with a deep understanding of the industry's dynamics. The industry has outgrown the skills level and what is required at the moment is intensive training backed with incentives to help retain good staff.

The International Air Transport Association (Iata) has predicted a significant drop in air freight demand globally, does UPS share the same predictions?

I have not personally heard about those predictions, but the reality of the industry is such that while some markets are facing a crisis, others have positive elements, which helps to balance the outcomes. It is not correct to make predictions based on a single situation.

By Ashaba K Abdul Basti Emirates Business 24/7 2008

http://www.zawya.com/story.cfm/sidZAWYA20081009032151/UPS%20to%20leverage%20IT%20for%20UAE%20expansion

US EXPORT COUNCIL PROVIDES ASSISTANCE TO US COMPANIES SEEKING ACCESS TO HIGH GROWTH MARKETS OVERSEAS. http://usexportcouncil.com/