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Medium-sized markets like Oman are helping GM to another year of record sales.
Srinivasan Iyer reports

Things are looking up for General Motors. For the first time in several years of declining sales, the US carmaker reversed the trend in September and saw its monthly sales rising by seven per cent in its key North American market. There was, however, a small blip in the celebrations, with the United Auto Workers briefly downing their tools for a few days to press for an improved pay structure and healthcare for its members. Overall, it has been a spectacular year for GM, with sales boost in Asia and the Middle East contributing to the company's rising fortunes. And no one is happier than Terence B Johnsson, president, GM Middle East Operations. Sales in the region have tripled over the last three years, with Oman growing at a record 44 per cent so far this year.

Says Johnsson, "We are going to see another sales record this year as well. That growth has primarily been driven by medium-sized markets like Oman and Qatar. GM's sales in Oman have risen by 44 per cent this year, with Hummer sales up by 35 per cent. There are two main reasons for this: product and service."

A successful September for GM in its home market of North America is all the more commendable when the overall scenario is taken into consideration. GM actually managed to beat the trend of declining sales. According to Johnsson, this turnaround was building up for some time now. "There has been a real effort on building the retail business in North America, with focus on the quality of sales and not just the quantity. We are doing business without too much discounting. The launch of the new products has been very well accepted and we are reaping the benefits of that success here with those cars."

The GM executive also hinted at new car launches. "We will be launching additional brands from the Denali lineup in November. The Denali has proved to be exceptionally successful and accounts for 40 per cent of the total sales."

GM, however, has no plans to introduce the Canyon pickup here as it does not see a big demand for the product. "The Canyon is not something we have in our plans right now. That demand is being served by the Chevrolet Colorado."

On the issue of a weaker dollar aiding GM's sales in the region, Johnsson says that at some point it will help indirectly. "Right now most currencies in the Gulf are pegged to the dollar so the pricing hasn't changed. But the yen or euro priced cars have certainly become more expensive. Our vehicles offer better value for money compared to their Japanese or European counterparts."

One of the focus areas for GM has been on improving customer satisfaction, with the carmaker launching several initiatives to bring customers closer to the company. One of those was the launch of the Hummer Zone in the sultanate, to give customers a chance to test the ability of the Hummer against tough off-road obstacles as well as against competition. "It is about providing a platform for potential customers and owners to interact," says Johnsson.

There are plans to start a Hummer User Base (HUB) here in November. HUB is essentially an outdoor activities club designed specially for Hummer owners and managed by them to build camaraderie by organising activities such as camping trips, desert challenges and treasure hunts. Club members will also be entitled to certain privileges and discounts. "We will be opening a Hummer Merchandise Store, in all likelihood at the OTE showroom here, followed by similar initiatives in Jeddah, Riyadh, Abu Dhabi and Dubai. To improve the off-road driving skills of Hummer owners, we also plan to organise camps at the Hummer Driving Academy in Bahrain."

On the issue of GM reintroducing the H1, Johnsson said the production of the iconic SUV has ceased and the lineup is now restricted to the H3, H2 and the SUT. "It had a great run, may be we will see it again one day. Like every car line or nameplate, the H1 has played its role. Just like the Camaro has made a comeback, you might be surprised to see the H1 making a comeback too."