The Edge managing editor Miles Masterson talks automotive sector with Markus Leithe, managing director, Middle East Commercial Operations of GMC.
How did you come to be from your beginnings at GM Europe? Was it a conscious decision to come and work in the Middle East and if so what attracted you here?
In 2011, I was offered the opportunity to relocate to the United Arab Emirates (UAE) and I was excited to accept, as this is such a buzzing and dynamic region. I started in this region with being responsible for sales, service and marketing for the Kingdom of Saudi Arabia (KSA), UAE and Oman. That was followed by assignments as the regional marketing director and then the regional sales and marketing operations director, before taking on my current assignment mid last year. So you see, my career has been a constant journey and this is what makes it exciting.
What have you learned about the market since your arrival in the UAE?
People who live in this region are very passionate. Especially when it comes to cars, you have a lot of automotive enthusiasts here that go all out to possess the best product in the market. And people want to be treated accordingly. That’s why we are so committed to building a stronger relationship with customers by delivering great products and the best retail experience. One big difference to Europe is the key driver that defines the cost of ownership. Fuel prices are lower here than in other regions. Even after the latest changes they contribute less to the cost of ownership than other aspects, such as service costs. That’s why we are offering full transparency in our service cost with our menu pricing. You can easily access this information online or at the service reception prior to the service appointment. Or even when considering the purchase of a vehicle to compare the cost of ownership. No hidden charges, no bad surprises.
Continuing from the above, can you elaborate more on the unique or most marked elements in your experience as previous GM director of vehicle sales and marketing operations Middle East?
We see a very bright future for Chevrolet in the Middle East. We want to take a holistic approach to offer the best products and retail experience and we call that Chevrolet Complete Care. It’s not a campaign; it’s an attitude to put our customers at the centre of everything we do. We promise our customers to take care of them. This starts with providing all the required information – be it online or at our dealership – to make the right decision. It continues with the right offer to fit the financial requirements and a great delivery experience. And then, most importantly, we take care during the ownership of the vehicle with a great product and service experience, so in the end, when the vehicle is due for replacement our customer would not consider looking for an alternative brand.
Of all the items mentioned, which aspects do you think are the most challenging here, as opposed to in Europe? You mentioned competition from Japanese car brands in the SUV category, for example.
There are a lot of opportunities for Chevrolet in the region. We have probably the most comprehensive and most modern vehicle portfolio of any manufacturer in the region. For us, the spirit of innovation and the passion for performance are at the heart of every vehicle. And performance means something very different for every customer. For a Corvette customer that might mean a great track handling, for a Silverado customer that might mean a great off-road capability and for a Spark customer that might mean low cost of ownership and most advanced safety features.
What are your strategies to combat this competition, and are they a one-size-fits-all approach to the Middle East or is each market different?
Let’s face it, customers are very different in every market of the Middle East and even within every market. Let’s take two different Tahoe customers for example: One could be a Qatari customer with a family of six people who uses his vehicle to visit his relatives in the village, the other one a German single expat in Dubai who loves the design and the powerful V8 engine that the Tahoe offers. On the surface they are both a Tahoe owner, but we are spending a lot of time talking to our customers to better understand the different needs and tailor the products accordingly. We take care of them.
According to some critics of the industry, there also seems to be a variance in vehicle price across the Gulf Cooperation Council (GCC), apparently marked at times?
We want to ensure you that this assumption is not true. If you compare the offers in detail, the specifications and options, you will find out that there is little to no price difference between GCC countries. And we are very transparent with that. Just access the dealer websites and you will agree.
Some people also believe the high prices and often-reputed poor after-sales service of some brands in Qatar is due to the fact that many automotive brands are in the hands of a few agents and there is no free market competition here or in many other areas of the region. What is your perspective on that?
Again, these assumptions are not true. Look at our partner Jaidah Automotive in Qatar. They have just invested a huge amount of money in a new showroom that reflects their commitment to deliver an outstanding shopping experience for Qatari customers. It is all about having the right partner.
In light of the fact that retail across the board in the region is apparently experiencing a slump in consumer spending, due to what analysts ascribe to lay-offs and low oil price, do you think the Qatar market is big enough to support such a large premise?
Frankly I don’t see a slump in consumer spending. The Middle East region has traditionally been strong when it comes to interest in automobiles compared to many other places across the world. The automotive market is experiencing a lower growth rate at the moment than what we have seen during the last few years, but it will remain strong in future, especially for a brand such as Chevrolet. For example we have seen a 7.5 percent increase in Chevrolet passenger vehicles for 2015 versus 2014.
What do you think of the Qatar Motor Show as a platform for launching or showcasing vehicles and having a presence at in relation to the Dubai version? How important is it to GMC and the automotive industry in the region?
For Chevrolet, our focus in Qatar was the opening of the largest Chevrolet showroom in the region at Jaidah Automotive. With an impressive space of 3300 square metres, this centre will showcase over 33 Chevrolet vehicles with a unique zoning concept. The new location comes as part of Jaidah Automotive’s ongoing expansion strategy. For GMC, the Qatar Motor Show was important for the brand that has been in the country for more than 60 years. GMC trucks and SUVs have been important in the development of the Qatar community, and we usually leverage the Qatar Motor Show as an opportunity to show our appreciation for our loyal customers.
What about general trends? Self-driven cars and eco-friendly/hybrid vehicles are two trends that are gaining ground in the sector internationally. Will we see any developments here from your brands, or in the regional industry in general?
The automotive industry is going through big changes at the moment. Our General Motors president Dan Ammann stated very recently that we are anticipating more changes in the transportation industry in the next five years than the last 50 years. The Middle East has always been very open to innovation and technology, so I am convinced that in a few years from now the automotive landscape will look very different.
In which segments of the market do you foresee the most growth in the sector in 2016 and why?
The current Chevrolet line-up is one of the newest and most comprehensive in the Middle East covering every segment from stylish city cars through iconic sports cars to dependable SUVs and full-size pickups. We strongly believe in the Chevrolet brand in the Middle East and that we have the right product line-up and local knowledge to cater to our customer needs to continue our success in the region. We introduced four new vehicles at the Dubai International Motor Show, including the Camaro, Silverado, Malibu and Spark. In addition to those, we will be launching an additional five products by the end of 2016.
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