With the effects of the global financial crisis on the regional auto market still unclear, it’s hard to say what 2009 will bring for multinational automakers. While sales have not dropped drastically to date, dealers across the region have begun introducing deep discounts in advance of worsening financial conditions that may cause a slowdown in the market.
What the future will bring is anyone’s guess, but with expatriate workers fleeing a hard-hit Dubai in droves, things don’t look good.
Waldo Galan, managing director of Ford Middle East, is staying optimistic about his company’s prospects for 2009. Relying on brand loyalty, a good cost to quality ratio and the young regional market, Ford seems ready to tackle the financial crisis head-on.
Daily News Egypt caught up with Galan to get an insider’s view into the current situation of regional auto markets and prospects for the future.
Daily News Egypt: What are the most popular Ford models in the Middle Eastern market?
Ford, Lincoln and Mercury vehicles are popular across the range as we offer a diversified line-up of passenger cars as well as utility vehicles that cater for every customer need. Our SUV and crossover models have been on a growing trend over the past five years, and just in 2008, we delivered 45 percent more of these vehicles in the GCC markets alone.
Ford s leadership and heritage in truck and SUV manufacturing is undisputed, and our customers are touching upon the quality, safety and performance features of our products across the range.
Additionally, our full size passenger cars such as the Ford Crown Victoria, Mercury Grand Marquis and Lincoln Town Car have been all-time favorites across the GCC countries thanks to their outstanding driving dynamics, coupled with the ride comfort and class leading safety features they offer. The award-winning European Ford Focus is also a regional favorite thanks to its value for money.
How has the current financial turmoil impacted Ford Middle East and what is Ford s strategy for weathering the storm?
Surely the current economic situation has affected every industry in the Middle East, and we feel 2009 will be a challenging year for everyone. We are working closely with our importer-dealers to bring optimum incentives and solutions for our customers. Our dealer network is well established and their support is excellent.
While we are observing some reductions on our retail sales rates in the last four months, Ford sales reductions are not as heavy as the industry averages. Consistent promotion of value, increased emphasis on customer satisfaction and world-class products are supporting the trend.
Which areas of the region are growing fastest and why?
The GCC markets have been on a growing trend especially over the past five years, thanks to the oil boom. With the current economic situation, the industry will shrink a bit before it begins to bounce back toward the end of 2009.
As far as segments of the industry that will continue to grow, we see the mid-size SUV as well as the crossover market to continue to experience an upward shift in total share of the industry. In addition, small family sedans like the Focus, Fusion and Mondeo will continue to play well in the upcoming months.
As the youth is such a strong part of the overall purchasing population in the region, we feel that the New Fiesta will also engage their desire to get into that segment, [which] up to now had been void of exciting design and features.
What are Ford s plans for the region? Is implementing assembly operations in the Gulf part of Ford s vision for expansion?
Ford has no plans for assembly operations in the region. We are focused on strengthening and expanding our distribution network in the markets where we do business.
What are the biggest challenges Ford faces in the region?
The Middle East markets are quite competitive in nature. For the customer, getting the best value for his money is of paramount importance. And this is what we reinforce across the region as we have award winning, top quality products that are leaders in each of their segments.
We believe offering these superior products coupled with various warranties as well as our dealer support in after sales, presents the best value equation. And the growth we saw in the past few years especially in 2008 (up by nearly 30 percent) is proof that customers around the region see the value we offer.
What vehicle features are most important for Middle Eastern consumers?
Across most customer profiles, value for money, safety, comfort and driving dynamics. However, they are increasingly looking for features that make their life easier and richer. Ford s introduction of SYNC has captured that particular latent want and has captured the imagination of the consumers. Voice activated entertainment and phone usage like no other company can offer is playing out to be a major winner.
(SYNC is a factory-installed, in-car communications and entertainment system developed by Ford and Microsoft, allowing drivers to bring nearly any mobile phone or digital media player into their vehicle and operate them using voice commands, the vehicle’s steering wheel, or radio controls.)
We are introducing more of these additional features to the consumer as part of our ‘Quality, Green, Safe and Smart’ strategy.
