GM Middle East announces outstanding 2004 results

"This outstanding result highlights the remarkable year of growth that GM has experienced across the region. Our success has been driven by encouraging sales increases for almost every GM brand," said Terry Johnsson, Managing Director, GM Middle East.

"This is a very important time - a watershed - for GM in the Middle East; it is time for GM to take a new approach to the way we communicate with our customers, with the media and with the wider world," continued Johnsson. "The industry seems to be reluctant to reveal sales and other market data in this region. This causes a lot of confusion and hinders the ability of the media and the automotive companies themselves to base their reporting and planning on factual data. As the automotive leader, GM has decided that it is time that we proactively share our performance data with the market and be the leader in this area too."

Beginning now and going forward, GM will issue a 'state of the business' report every quarter detailing its successes and challenges, backed up by solid market data and performance results. "I believe that this can only be good for the auto industry in the region as we look for increased growth and transparency across the entire market," said Johnsson.

Johnsson attributed much of the substantial growth enjoyed by GM in the Middle East in recent years to the success of the Chevrolet lineup. While GM registered a 55 percent increase in 2004 sales versus the previous year, Chevrolet sales alone enjoyed a 70.5 percent increase in the last 12 months.

"In the last two years Chevrolet has launched some fantastic new products, which have helped establish the brand as one that has something to offer everyone," said Johnsson. "Chevrolet markets vehicles specifically manufactured for the region and offers a range of cars and trucks that is unsurpassed by any other brand for depth and breadth. This is a lineup that is hard to beat, a fact which is backed up by our excellent 2004 results."

The compact Chevrolet cars' first full year in the market has yielded extremely strong results for 2004, with the Chevrolet Epica experiencing a 168 percent sales increase, the Aveo seeing sales rise by almost 220 percent and the Chevrolet Optra witnessing a robust 547 percent sales increase.

Cadillac also recorded significant growth, showing a 50 percent increase compared to 2003 across the region. These latest sales results are evidence that GM's US$4billion investment in the renaissance of the premium marque has been money well spent. The Cadillac brand now competes in almost every segment of the luxury automotive market in the region, and the brand's growth in 2004 is testament to the growing preference for the brand among the region's consumers.

Saudi Arabia and Kuwait recorded particularly strong results in 2004, collectively comprising almost 62 percent of GM's total sales across the region. GM's larger SUV models, such as the GMC Suburban and Yukon and the Chevrolet TrailBlazer, contributed to much of the positive result won by these markets.

Chevrolet and GMC trucks continue to be popular in this region, recording a 62 percent increase in sales volumes over 2003. "General Motors' range of trucks is unique in terms of breadth, technology innovations and power," commented Johnsson. "The addition of the GMC Envoy XL and Chevrolet TrailBlazer EXT to the 2005 range will lift the lineup even further and strengthen our leadership position in this highly competitive segment."

The after-sales side of the business also recorded a strong year in 2004, as GMParts and ACDelco together posting a record year with sales up more than 46 percent.

"Four key areas drove the growth," Johnsson said. "First was an increase in parts sold through our retailers' workshops because of the record vehicle sales numbers and increasing customer retention. Secondly, retailers focused on personalization of vehicles with GM Accessories. Thirdly, we were able to grow our share in the independent aftermarket through our wholesale distribution network. The fourth reason is that we brought our products closer to our customers via our parts distribution center located in Jebel Ali, Dubai."