Increasing lending facilities support growth as car loans account for up to 70 per cent of car sales

August 29, 2010

Kamil Al Jawhari

Automotive sales in the Kingdom of Saudi Arabia (KSA) is expected to reach over SAR 69.4 billion in 2010, while there will be a 30 per cent growth in the number of vehicles sold from 676,000 to 880,000 within the next three years, according to a recent BMI report. A factor in the robust market growth is increased availability of lending facilities, with car loans expected to account for up to 70 per cent of car sales, up from 50 per cent.

Taking advantage of the industry’s robust growth forecast, Riyadh Motor Show 2010 – The 28th International Exhibition for Motor Vehicles, and Saudi Autoshop 2010 – The 14th International Exhibition for Auto Repair Equipment, Tools, Parts and Accessories, will showcase the latest models, accessories and specialised automotive services from leading international brands. Riyadh Motor Show and Saudi Autoshop will be concurrently held from December 5 to 9, 2010 (29 Dhu al Hijjah 1431 till 3 Muharram 1432) at the Riyadh International Convention & Exhibition Centre, expecting to attract over 85,000 visitors from all over the world.

Kamil Al Jawhari, Project Manager of Riyadh Motor Show at Riyadh Exhibitions Company, said: “The favourable economic conditions have helped consolidate Saudi Arabia’s reputation as a highly attractive automotive market. Moreover, there were several other factors that contributed to the encouraging auto sales growth in 2010, including the imposed restrictions on the age of imported used vehicles and the population growth in the country, which has helped spark the increase in demand for vehicles and auto parts and services. In addition, the local weather condition, which can be harsh on vehicles, has also been a factor in the steady demand for auto maintenance services.”

Industry pundits expect Saudi Arabia to remain generally impervious to the effects of the global downturn as a range of demographic factors and the country’s financial stability help cushion any negative impact on the automotive sector. Factors such as strong population growth of up to 3 per cent annually, high disposable income, low tariffs on imported cars and low fuel cost are boosting the automotive sector’s growth prospects, even as up to 60 per cent of the country’s population comprise the 16 to 64 age bracket, which is within the industry’s market range.

Riyadh Motor Show 2010 will showcase the latest models of passenger cars, station wagons, Sports Utility Vehicles (SUV), pick-up trucks, motorcycles, Special Purpose Vehicles, and 4×4 vehicles. It will also include automobile financing and insurance services.

Saudi Autoshop 2010, which is held concurrently, will feature the latest automobile accessories and repair service equipment; gas station equipment; automobile parts; tires, exhausts and batteries; and automobile care products.

Summer deal from Hertz UAE brings 20% discounts on monthly rentals,  free tank of fuel and choice of 1500 new cars

Dubai, UAE, August 22nd 2010:  After the recent 11 per cent increase in petrol prices in the UAE, there is at least some good news at the pumps for car rental users in the Emirates.

Hertz UAE has just launched a new summer deal which, in addition to giving savings of up to 20% on monthly rentals, offers customers a free tank of fuel and no refuelling or recharges of fuel when the vehicle is returned.

Making the offer even more attractive is the fact that those taking it up are very likely to drive away in a new vehicle.

While one effect of the economic downturn on the car rental business has been to slow down spending on fleet modernisation, Hertz UAE has already purchased 1,500 new vehicles to add to its fleet this year.

“We’ve made a big investment to make sure that our customers continue to drive around in new vehicles, and not the three to four-year-old cars you find elsewhere,” said Nigel Johnson, General Manager of Hertz UAE.

“At the same time, we’re doing everything else we can to give them the best value for money. The new summer monthly rental rates bring significant savings. And following the recent increase in fuel prices, we feel the offer of a free tank of petrol, and the waiving of refuelling or recharges when a vehicle is returned, will go down very well.”

Monthly rental 2

Part of the The Al-Futtaim Group, Hertz UAE recently expanded its network to 13 locations across the Emirates by opening an exclusive service desk at Abu Dhabi International Airport.

This offers fast check-in access to a wide selection of vehicles and unique 24/7 services.

• First Middle East Award for Ford’s flagship sedan
• 2010 Taurus adds to its International Car Of The Year (COTY) accolades
• After one year in service, the hot-selling 2010 Ford Taurus is posting a resale value increase of 39 percent – or $7,100 – over the 2009 model

10Taurus_70_ff-new

DUBAI, UAE, 21 August, 2010 – Ford’s most innovative sedan, the all new Taurus, has been voted Saudi Auto’s ‘Car of the Year’ 2010. 

Leading Arabic language automotive magazine Saudi Auto gives its ‘Car of the Year’ award to the most outstanding new car sold in Saudi Arabia and the Gulf markets, as voted by an independent jury of professional automotive journalists.

“This is quite a coup for Ford Taurus and we thank Saudi Auto and the members of its jury for recognizing our flagship sedan as its 2010 Car of the Year. This is the first major Award for the Taurus in the Middle East, but based on the car’s ability to turn heads and win fans, we are sure it won’t be the last,” said Larry Prein, Ford Middle East’s Managing director.

Bakur Azher, publisher and editor in chief of Saudi Auto, and jury member of the Car of the Year award said,   “Ford Taurus is quite simply a great car.  Up against some tough competition, it stood out for its driving performance, affordability, safety, and industry-leading technologies that are usually only available in premium models. For us, Taurus was the clear victor.”

Ford Taurus

The Taurus features an impressive set of standard and available industry-exclusive technologies that add convenience, connectivity, safety and value for customers. They include Adaptive Cruise Control, Collision Warning with Brake Support, Intelligent Access with Push Button Start, MyKey™ , Blind Spot Information System (BLIS™) with Cross Traffic Alert, Rain-Sensing Wipers, EasyFuel™ capless refueling, Ford SYNC® that provides voice-activated telecommunications and entertainment connectivity, Navigation System, Sony® Audio system, Multi-Contour Seats with Active Motion™, and a second generation SecuriCode™ Keyless Entry Keypad.

Ford Taurus resale value up

With all the improvements in design and technology, the hot-selling 2010 Ford Taurus is commanding impressive results at auction in the US, posting an average 39 percent increase in resale value – or $7,100 – over the 2009 model.  The resale value of the new Taurus after one year now surpasses that of one of its strongest competitors, the 2010 Toyota Avalon.

Key contributors to the residual value improvement of the sedan are the design, quality, customer satisfaction and state-of-the-art technology offered with the 2010 Ford Taurus.
 
Ford Taurus Pride Points

The new and redesigned Ford Taurus is no stranger to Car of the Year awards and industry recognition. Last December, the 2010 Ford Taurus was named International Car of the Year (ICOTY) at the Los Angeles Auto Show, which followed a win in the ‘Best New Family Car over $30,000′ category at the annual Automobile Journalists Association of Canada’s (AJAC) Car of the Year TestFest. The Taurus also made it into the Top Ten Family Cars of 2010 in Kelley Blue Book’s kbb.com.

In June, Taurus was ranked highest in its segment in the J.D. Power and Associates’ 2010 Initial Quality Study (IQS).

On the safety front, Taurus has also received the U.S. National Highway Traffic Safety Administration’s (NHTSA) top five-star rating for driver and passenger in front and side crash tests and a “Top Safety Pick” from the Insurance Institute for Highway Safety.

Other accolades the 2010 Ford Taurus has accumulated since its launch last year, include:
• Edmunds.com Technology Breakthrough Award
• 2010 Best Redesigned Vehicle by kbb.com
• kbb.com 2010 Best Resale Value award in the full-size car category

Ford Taurus Ramadan Roadshow

Saudi consumers in Riyadh and Jeddah will soon be able to see for themselves why Taurus is gaining so much attention. Taurus roadshow activities will begin at the Kingdom Mall, Riyadh from August 18th to the 25th before moving to Red Sea Mall, Jeddah from August 29th to September 5th 2010, featuring exciting activities including a simulator ride and on-the-go baby-foot (foosball) matches.

“Since its arrival early this year, Ford Taurus has been a huge success.  Taurus is simply the perfect example of bringing premium features at an affordable price and we are excited to show all of these to our customers here in the Kingdom,” said Hussein Murad, Ford Middle East Sales director.  

• Launch of first full hybrid vehicles with parallel technology that allows vehicles to run on internal combustion, electric or combined power
• Fuel consumption lower by up to 40 per cent compared to 1st-gen V8 vehicles
• Models to complement alternative energy initiatives in the Middle East

Bosch Components for Hybrid Vehicles

Bosch, the world’s largest supplier of automobile components, has recently started the production of parallel full hybrid technology for the new hybrid Volkswagen Touareg and Porsche Cayenne S sport utility vehicles (SUVs). The parallel full hybrid system allows the car to run on internal combustion, electric or combined power. Both car models are being offered as ‘parallel full hybrids’ for the first time and will particularly interest markets such as the Middle East which is exploring broader alternative energy use.

The hybrid vehicles feature the Bosch Integrated Motor Generator (IMG), a water-cooled electric motor that includes a separate clutch. The compact hybrid module, located between the internal-combustion engine and the transmission, can generate 34 kilowatts of power and a maximum torque of 300 Newton meters. The SUVs can thus cruise at a maximum of 50 to 60 kilometres per hour via pure electric power, provided the nickel metal hydride (NiMH) battery is sufficiently charged.

A ‘power boost’ function allows the electric motor and combustion engines to work together and propel the vehicles from 0 to 100 kilometres per hour in 6.5 seconds. This increases performance to 279 kilowatts (380 horsepower), for a maximum torque of 580 Newton meters. Fuel consumption can thus be reduced by as much as 40 per cent compared to first-generation V8 vehicles.

“The collaboration with Volkswagen and Porsche enabled Bosch to apply its extensive experience in the development of gasoline injection systems to come up with a pioneering hybrid framework for two of the most popular SUVs in the market. These vehicles are a perfect fit to the increasingly environmentally conscious Middle East, which is fast emerging as a hub for alternative energy development. We will be observing how these models perform in the region’s unique driving environments and provide feedback that will help in Bosch’s goal of further streamlining its hybrid systems,” said Guido Gring, Sales Director of Automotive Aftermarket Division, Robert Bosch Middle East FZE.

The Bosch Motronic control unit manages the combustion engine at high levels of precision, adjusting even the rate of individual injections. It uses an additional Controller Area Network bus interface exchange all relevant data with the hybrid component, power electronics, and battery. The setup results in a highly efficient direct injection system that significantly reduces exhaust emissions.

Parallel full hybrid technology can be more cost-effective compared to other hybrid concepts, due to features such as the use of a single electric motor that alternates as a motor and a generator. Bosch is currently fine-tuning each component of hybrid systems to meet key goals such as reducing the space occupied by power electronics. The company’s developers have been able to reduce the volume of power electronics by one third to 10 litres and are aiming for next-generation 5-liter configurations.

DUBAI, UAE, July 25, 2010 –Ford received five segment awards, more than any other brand, in J.D. Power and Associates’ 2010 Automotive Performance, Execution and Layout (APEAL) Study. The closely watched survey measures customer satisfaction in design, content, and vehicle performance. 

In June, the Ford brand achieved the highest initial quality among all non-luxury brands in J.D. Power and Associates 2010 Initial Quality Study (IQS).  For the second consecutive year Ford was the only non-premium brand to achieve above industry average scores in both J.D. Power’s IQS and APEAL studies.

In this year’s APEAL survey, owners of the 2010 Ford Fusion, Taurus, Flex, Expedition and Explorer Sport Trac, rated these vehicles highest in their respective segments for vehicle appeal, which is comprised of style, comfort, performance and other vehicle attributes.  

“It’s a significant accomplishment to do so well in APEAL on the heels of receiving high marks from J.D. Power on initial quality,” said Bennie Fowler, group vice president, Global Quality and New Model Launches.  “The APEAL results stand as another proof point that Ford is redefining quality. We know it’s not enough to build defect-free cars and trucks. We move to the next step by delivering an experience that exceeds our customers’ expectations with features they would expect to find only in high-priced luxury lines.”

APEAL surveys customers on what they like about the performance, execution and layout of their new vehicle after the first three months it is in service. Customers rate their level of “gratification” on a variety of vehicle attributes, including safety, fuel economy, cargo space, roominess and exterior styling. 
  
“At Ford, we are accelerating the development of vehicles customers will fall in love with at first sight and grow even fonder of over time,” said Derrick Kuzak, group vice president, Global Product Development. “To deliver on that promise, our goal is nothing less than product excellence in design, feature content, safety and quality at an exceptional value.”

Since “gratification” is difficult to define and even harder to measure, Ford looked for new ways to understand how customers define it.  Researchers combed through surveys, looked at historical trends and studied customer satisfaction rates. They spoke with people who recommended Ford to their friends, and to those who dismissed the brand out of hand. By discovering what makes customers feel good about their cars, Ford was able to develop customer-driven standards—Ford’s product DNA.

This strict set of guidelines is designed and built into every vehicle for a consistent feel and sound that is unmistakably Ford.

This “emotional engineering,” which focuses on the senses of sight, sound and touch, is helping Ford deliver vehicles that are satisfying to own and drive.

To add structure to the efforts to build in a Ford DNA strategy and increase customer satisfaction, Ford focuses its quality efforts in three main categories:
• Basic quality – the fundamental reliability of a vehicle.
• Performance quality – includes attributes such as fuel economy and quietness
• Excitement quality – those unexpected convenience features that surprise and delight the customers.

Ford is working to extend customer quality satisfaction beyond durability and functionality to   excitement quality – the parts of the vehicle that surprise and delight. Excitement quality includes features from seats specially designed for comfort, to materials and surfaces that look good and feel right, and interiors with ambiance and innovative exterior paints.

The ownership experience is also enhanced by features such as MyFordTouch in-car connectivity technology, multi-contoured massaging seats, changeable ambient interior lighting, and refined sound quality.

“When applying the three categories of quality, it’s never about either/or; it’s all three,” said Kuzak. “We’re still consumed with basic quality, but we’re now also very focused on providing appeal and excitement to meet customers’ desires.”  

ATM Group photo of Certified Sales Team

DUBAI, UAE, July 12, 2010 – Ford Middle East recognized Al Tayer Motors, the Ford, Lincoln and Mercury importer in the UAE, and Premier Motors, its subsidiary in Abu Dhabi and Al Ain, for achieving 100 per cent certification across their retail sales operations.

Ashok Khanna, CEO, Al Tayer Motors said: “This achievement is one more step in our commitment to making the buying experience at our showrooms one of the best for our customers. Our aim is to provide them with all the information that can facilitate their purchase decision.”

Hussein Murad, director of Sales at Ford Middle East said, “We congratulate the team of Al Tayer Motors for this achievement. It is because of their constant efforts and passion to learn extensively about our products and services that they have completed their sales certification.”

“We have an excellent lineup of world class award winning products across the Ford, Lincoln and Mercury brands that are setting the industry trend globally. And with the excellent sales support of Ford certified personnel, our customers know that they have the peace of mind,” concluded Murad.

Commercial vehicle segment to serve as one of the industry’s key growth catalysts

July 12, 2010

Kamil Al Jawhari

The Kingdom of Saudi Arabia’s (KSA) automotive sector is poised to sustain a positive growth outlook over a five-year period with sales value expected to reach over SAR 80.6 billion by 2014, according to a recent report by BMI. The robust growth forecast is underpinned by the positive performance of the commercial vehicle segment, which is expected to remain strong over the next five years.

Riyadh Motor Show 2010 – The 28th International Exhibition for Motor Vehicles, and Saudi Autoshop 2010 – The 14th International Exhibition for Auto Repair Equipment, Tools, Parts and Accessories, will feature an expanded showcase of the latest automotive products and services as part of a strategy to complement the positive growth trend by providing a gateway for leading local and international brands to strengthen their foothold in the Saudi automotive market. Thousands of visitors from all over the world are expected to participate in the Riyadh Motor Show and Saudi Autoshop, which will be concurrently held from December 5 to 9, 2010 (29 Dhu al Hijjah 1431 till 3 Muharram 1432) at the Riyadh International Convention & Exhibition Centre.

Kamil Al Jawhari, Project Manager of Riyadh Motor Show at Riyadh Exhibitions Company, said: “The robust growth forecast underlines the resiliency, the strength and the sound fundamentals of Saudi Arabia’s automotive market, creating a genuinely attractive business environment for local, regional and international investors and key industry players. Riyadh Motor Show and Saudi Autoshop will help usher in new investors and businesses and enable them to take advantage of the excellent long-term growth prospects in Saudi Arabia.”

“There are several new exhibitors participating this year, while thousands of visitors will be converging for the back-to-back events, providing the perfect opportunity to explore business opportunities and expand into new markets. Moreover, in line with the growing demand for commercial vehicles, we have created dedicated sections that provide an extensive range of products and services for this segment during the Riyadh Motor Show,” added Al Jawhari.

Riyadh Motor Show 2010 will showcase the latest models of passenger cars, station wagons, Sports Utility Vehicles (SUV), pick-up trucks, motorcycles, Special Purpose Vehicles, and 4×4 vehicles. It will also include automobile financing and insurance services.

Saudi Autoshop 2010 will feature the latest automobile accessories and repair service equipment; gas station equipment; automobile parts; tires, exhausts and batteries; and automobile care products.

Doha, Qatar – 6 July 2010: Jaguar has announced the arrival of the all-new XJ at Alfardan Premier Motors. Sleek, sporting and sophisticated, the all-new Jaguar XJ brings a daring new spirit to automotive luxury - it offers a seductive mix of striking design, breathtaking performance and engineering without compromise. The XJ is now available at Alfardan Premier Motors’ showroom at Al Sadd St.

Building on the success of the new XK and XF models globally and in the Middle East, the introduction of the all-new XJ is a landmark for the revitalised Jaguar Brand. Clearly positioned as the company’s four-door flagship, it extends the appeal of the XJ to a new generation of customers.

Ian Callum, Jaguar Design Director said: “The new XJ is a thoroughly modern interpretation of the quintessential Jaguar. It is the most emphatic statement yet of Jaguar’s new design direction.”

Distinguished by unique exterior and interior design features, the XJ includes, an innovative new panoramic glass roof, an integral part of the all-new XJ’s design concept, enabling the car to have a lower, more streamlined roofline, while dramatically enhancing the feeling of light and space inside.

The all-new XJ’s cabin offers four specification levels – Luxury, Premium Luxury, Portfolio and Supersport – allowing the customer to tailor the car to suit their tastes of choice in colours, veneers and leathers not seen before in a Jaguar.

The XJ benefits from the most advanced, powerful and efficient Jaguar powertrains ever. The XJ features a 5.0-litre naturally aspirated V8 engine with 385 horsepower or a 5.0-litre supercharged V8 available in 470 and 510 horsepower versions.

Proven Jaguar dynamic technologies are taken to new levels in the all-new XJ. Features such as air suspension, Adaptive Dynamics (continuously variable damping), Active Differential Control and quick-ratio power steering deliver the blend of responsive, dynamic handling and refined, supple ride expected from a Jaguar.

Inside the car there are advanced new technologies; 12.3-inch high-definition Virtual Instruments complement an innovative, Dual-View technology 8-inch Touch-screen that can project DVD movies or television programmes to the passenger while the driver views vehicle functions or follows satellite navigation.

Premium surround sound options include the top-of-the-range 1200W Bowers & Wilkins system, as well as advanced infotainment features like hard drive-based audio and navigation systems, and comprehensive connectivity for portable audio and video devices via the powerful Media Hub.

The all-new XJ also takes a new approach to sustainable motoring. Constructed using Jaguar’s aerospace-inspired aluminium body technology, the XJ is lighter than its rivals by at least 150kg which significantly improves performance, handling and economy, while delivering increased strength, refinement and safety.

Alan Whaley, General Manager, Alfardan Premier Motors, said, “We’re delighted to have the All-New XJ in our market. The Jaguar Brand and its new design direction have witnessed a huge success in Qatar and we look forward to taking it further with the new XJ.”

Robin Colgan, Managing Director of Jaguar Land Rover Middle East and North Africa said: “We are very excited about our all-new flagship which sets benchmarks in terms of design, performance and engineering. Jaguar customers in this region look for luxury, individuality and performance and we’re certain the flagship XJ, which is truly beautiful and exhilarating to drive, will enjoy success here, just like the XK and XF.”

The all-new XJ offers extremely attractive cost of ownership with impressive fuel economy and emissions performance across the range. 

• Top three Al Jazirah Vehicles Agencies Co. sales consultants headed to Ford Motor Company World Headquarters in Dearborn, Michigan to compete for the World Cup Walk-Around Sales Champion title
• The 2010 World Cup Walk-Around Challenge will reward sales consultants for their knowledge and passion in presenting the 2010 Ford Taurus
• Contestants will be judged on their ability to create effective presentations that connect elements of the Ford Story and vehicle features with real-world needs in a memorable way
• Winners of the competition will receive US$9,000

DUBAI, UAE, 03 July 2010 – Al Jazirah Vehicles Agencies Co., the Ford and Lincoln importer-dealer in Saudi Arabia, is headed to Ford Motor Company World Headquarters in Dearborn, Michigan to compete for the 2010 World Cup Walk-Around Sales Champion title. After an intense regional competition in Dubai, UAE, Al Jazirah Vehicles Agencies Co. advanced to the World Cup Finals along with thirteen other regional winners from the Asia Pacific, Sub-Saharan Africa and Caribbean and Central American regions.

The competition will reward sales consultants for their knowledge and passion in presenting the 2010 Ford Ranger or 2010 Ford Taurus. Contestants will be judged on their ability to create effective presentations that connect elements of the Ford Story (www.thefordstory.com) and vehicle features with customer needs in a memorable way.

World Cup Finals contestants Mohammed Rashidi, Abdulaziz Al Sayed and Mouaid Yahya, representing Al Jazirah Vehicles, beat out 14 competitors from 9 dealerships around the globe by effectively demonstrating their product expertise and enthusiasm.

“We are very proud of our team for making it all the way to the World Cup Finals in Dearborn,” said Sheikh Abdullah Al Kraidees, AJVA’s president.” They are truly dedicated and deserve to be recognized for their product knowledge and hard work.”

Along with the World Cup Walk-Around Champion title, finalists will compete for US$9,000 in stored value MasterCards and trophies for themselves and their dealerships.  Other participants from the Middle East are:  Ahmad Hanfi - Ghriwati Auto in Syria and Adil Jal Mistry - Premier Motors (Abu Dhabi, UAE).

“This is a great event on multiple levels,” said Hussein Murad, Ford Middle East’s director of Sales.  “It serves as an incentive to help sharpen the knowledge of our sales consultants while encouraging them to better share their passion for Ford with customers. The World Cup recognizes excellence among a practice that is not used to being center stage and, for many of the participants, it serves as an opportunity to travel to North America and to Ford headquarters for the first time ever.” 

The market for fuel efficient compact cars in the Kingdom of Saudi Arabia (KSA) is witnessing steady growth, according to Suzuki Saudia, the sole distributor of Suzuki vehicles in Saudi Arabia and part of Bamarouf Group. Suzuki Saudia’s observation comes at a time when Suzuki’s globally acclaimed compact car Celerio is seeing impressive sales in the Kingdom, complementing the fact that more than 100,000 units of the model were sold worldwide in just the first six months of its launch.

“Traditionally the Saudi auto market has been known for its large sedans and SUVs. However, we have been observing a small but definite change over the recent years, with small and compact cars generating significant interest in the local market. Suzuki, with its wide array of cars in this segment, has seen its customer base in KSA growing steadily over the last few years. Suzuki Celerio, our recent introduction in the compact car category, in particular has witnessed excellent sales in the Saudi market due to its build quality, aerodynamic design, fuel efficiency, safety features and overall performance,” said Maher Al Nabawi, Deputy General Manager, Suzuki Saudia.

The Suzuki Celerio comes with a naturally aspirated, 1.0L, 12-valve three cylinder, 67 horsepower engine. The compact dimensions of the engine block significantly contribute to reducing the weight of the car, which in turn results in increased fuel mileage. Also, the Celerio’s Euro 3-rated emissions level is the best in its class.

The full-option Celerio features a radio, CD and MP3 player; double airbags; an anti-lock breaking system; and power steering. The Celerio fully complies with the safety requirements set by the Saudi Arabian Standards Organization through Total Effective Control Technology (TECT). TECT creates crushable structures to absorb impact energy and disperse it away from occupants during a collision. Despite being small and compact, the Celerio has spacious interiors that can comfortably accommodate four passengers, unlike some of the other small cars that only look spacious from the outside. The Celerio has become highly popular among Saudi Arabia’s young drivers and small and limited-income families due to its low carbon dioxide emission, high fuel efficiency, style, comfort and user-friendliness, in addition to services provided by Suzuki Saudia throughout the Kingdom.