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Terry Johnsson
- USA: Tuesday, January 11 - 2005 at 16:43
Since his appointment in May last year Terry Johnsson, regional managing director of the world's largest car company General Motors has become engaged in a rapid expansion strategy. He spoke to AME Info at the Detriot Motor Show this week.
Indeed, General Motors' regional sales have been on an upward trajectory since 2003 when the firm embarked on a series of product launches to widen its range despite the long shadow of the war in Iraq.
'The acquisition of the Korean manufacturer Daewoo gave us the product required at the lower-end and this lay the foundation for what we see as a huge expansion phase,' says Mr. Johnsson who ias responsible for all operations in Bahrain, Iraq, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria, UAE and Yemen, and reports back to a divisional headquarters in Miami.
'We have always been strong in the SUV market in the Middle East with the No2 slot behind Toyota but having a full range now gives us a major advantage. The Middle East car market is just in a fantastic position. The economies are now all growing very fast, and at the same time the low US dollar makes our products highly competitive.
'Even the slowdown in the US domestic car market is to our advantage as it means that we have no shortage of cars to sell. In the past US firms have often suffered from having great demand for a vehicle but then not being able to supply it. We will not have that problem; we can get all the vehicles we need.'
However, Mr. Johnsson admits that gearing up for expansion means a lot of work down on the ground, arranging the dealer network to cope and training up staff both on the sales and maintenance side. 'This has kept me pretty busy since I arrived in Dubai,' he says.
'But I enjoy it, and it is wonderful to see the success of a car like the Lumina SS which we import from our Australian operation. Here we offer a very fast and capable car for a price that is a fraction of our competitors.'
This seems to be the way forward for General Motors. Sure the new products will continue to roll out, and the Detroit Motor Show this week gave a sneak preview of the Cadillac STS due in Q1. There will also be an extended version of the Trailblazer and Envoy SUVs.
But the great strength of General Motors in the Middle East is its attractively-priced existing product line-up - from the entry-level, ex-Daewoo Aveo to the Hummer SUV and Lumina SS.
Just prior to Mr. Johnsson's arrival in Dubai last year General Motors relocated its regional office for Africa and Middle East from Cairo to Dubai. This headquarters handles sales, service and marketing operations in over 40 markets in Africa and the Middle East as well as GM's manufacturing plants in Egypt, Nigeria, Tunisia and Kenya.
This is a sign of the times, another multinational relocating to Dubai. Does Mr. Johnsson, a 21-year GM veteran who came to Dubai from Singapore, think it was a good move?
'It is a vital part of our reorganization for expansion,' he says. 'It is was a big shift to take our sales up towards 100,000 units a year, but once you get higher than that you just have to look at everything again and how to do it better.'
On the marketing side General Motors intends to become more active in community sponsorships and will inevitably be raising its profile all round to achieve its ambitious sales drive. The biggest US car giant is going places in the Middle East.
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