General Motors to double capacity at parts centre in Jebel Ali

The announcement takes the total investment made by GM in the project to $60m and doubles the capacity of the regional auto parts distribution facility.

GM Chairman and Chief Executive Rick Wagoner joined Sultan Bin Sulayem, Executive Chairman, Ports, Customs and Free Zone Corporation and Matar Humaid Al Tayer, Director, DHL Danzas Air & Ocean in a ground breaking ceremony to mark the expansion. The existing premises will be expanded by over 12,000 square meters to double the existing size, providing space for more than 36,000 spare parts from brake pads and spark plugs to engine blocks and exhaust systems.

The distribution center was opened last summer and was deliberately planned to have the capability for expansion, which was originally scheduled to take place towards the end of the decade. The growth in demand for GM vehicles and parts has allowed the company to approve expansion plans well ahead of schedule.

The MEDC is considered one of GM's biggest customer service initiatives in the region, ensuring that customers receive the parts needed for the repair of their vehicles by the retailer in the shortest possible time. The center distributes parts for all GM cars and trucks, including Chevrolet, Cadillac, GMC, Hummer and Opel as well as handling ACDelco parts for all makes of vehicles.

GM uses DHL/Danzas as its logistics partner in the project. In an innovative arrangement, DHl/Danzas operates the facility's core functions, including areas not normally outsourced to third parties such as materials management and customer services.

Speaking at the ground-breaking ceremony, Terry Johnsson, Managing Director of General Motors Middle East said: "The MEDC is rapidly becoming one of the aftersales success stories around the world. All our operations here are growing very fast and our parts business is no exception.

There is no doubt in my mind that this is a world class facility that has successfully transformed our parts delivery capability across the Middle East. This is exactly what we need to support our overall business in the region as we move quickly towards - and then beyond - our 100,000 vehicles per annum sales target. "

Sultan Bin Sulayem, Executive Chairman, Ports, Customs and Free Zone Corporation said: "It is very gratifying to see a global multinational like General Motors investing more money in Jebel Ali - particularly as it is doing so ahead of schedule. It proves how successful Jafza can be as a regional distribution and commercial hub for many global companies and investors targeting the Middle East, Africa and Far East."

Bin Sulayem added that JAFZA has witnessed huge growth over the last few years, with the number of global and local companies operating in Jafza increasing to more than 3800.

Matar Humaid Al Tayer, Director of DHL Danzas Air & Ocean in Dubai, said: "For DHL Danzas Air & Ocean Dubai this a flagship project where we provide a total supply chain management solution including the Materials Management function. We are very proud to be partners in this expansion project which demonstrates the success of the unique partnership between the world's leading automobile manufacturer and the world's leading integrated logistics services provider."

General Motors increased investment in parts distribution comes at the end of what will be the company's most successful year ever in the region with a 60% increase in vehicle sales over 2003. The company believes it is well on the way towards its stated aim of 100,000 sales in the region.