Ford Mideast chief: KSA is our largest market in region
IN order to combat the dense smog plaguing its cities, China has resorted to a clever solution that puts all major car exporters under pressure.
Companies can manufacture and export cars as usual, as long as 8 percent of their production is made up of electric or plug-in vehicles. China intends to apply that rule as of next year, although a concession given to German officials is said to postpone the official application of the rule until 2019.
Most companies expect difficulties in meeting these conditions especially given that many did not even reach the 6 percent mark this year, in China or elsewhere.
China’s cleanup plan will not stop at 8 percent but will rise gradually to 12 percent by 2020, putting the brakes on the rise of the combustion engine in the country and giving more room for what Beijing calls “new energy vehicles.”
Automakers are also required to build batteries for their electric cars locally in China. Apart from BMW, which has an agreement to source cells from a Chinese supplier, other companies are scrambling to find local battery suppliers for their vehicles.
This clever move by China is likely to change the nature of car manufacturing worldwide. No company can ignore the Chinese market, which is the main engine for growth in the industry at the moment. When they comply with the Chinese demand for clean energy, they will also apply similar rules in other regions, especially their countries of origin.
The Gulf region will soon catch up with this trend, even without export restrictions or conditions. All the region needs to do is build a suitable infrastructure to accommodate the recharging needs for electric and plug-in hybrids.
Adel Murad is a senior motoring and business journalist based in London.
QHe confirmed in an interview with Arab News that he sees a bright future for Saudi Arabia with Saudi Vision 2030.
Best-selling Ford models in the Kingdom include the Taurus full-size sedan and the mid- and full-size sport utility vehicles (SUVs), Explorer and Expedition. Ford also invests in many social and environmental initiatives in the region.
These are excerpts from the interview:
Q: How did the Saudi market develop for Ford last year and during the first quarter of 2017?
A: Saudi Arabia is one of the most important markets for Ford in the Middle East. While the industry overall is seeing challenges in the region, we see a lot of opportunities for growth especially as our local dealer partners continue investing in the Ford business. For example, just recently, Al Jazirah Vehicles Agencies Co. (AJVA) held the grand opening of one of the world’s largest Ford dealerships under one roof, out of Riyadh. That is an outstanding achievement for AJVA as it observes its 30th anniversary as the Ford importer-dealer in Saudi Arabia. AJVA is also building on its existing customer satisfaction initiatives with investments in its aftersales business and service excellence initiatives. For example, it is one of the very first Ford partners to implement an enhanced Ford Service Excellence standard to continue to deliver higher levels of customer satisfaction.
As for Lincoln, during the first quarter of the year, we launched the highly anticipated Lincoln Continental and it has received strong demand across the region. This flagship sedan is designed and engineered to deliver an effortless driving experience conveying elegance, athleticism and dynamics.
Q: What new drivetrain technology is Ford planning to introduce to the Saudi market this year?
Currently, in terms of fuel-efficient powertrains, we do offer our awardwinning EcoBoost engine technology on almost every Ford and Lincoln vehicle. This innovative engine technology not only delivers high fuel efficiencies but also maintains the performance and power that our customers expect from larger engines.
Q: In the context of the Gulf Cooperation Council (GCC) region, what is the relative rank and size of the Saudi market and how important is it to Ford?
A: There is no doubt that Saudi Arabia is our largest market in the GCC and the Middle East overall, and our commitment to this key market continues to go from strength to strength. Our local dealer partners are equally committed to the Ford business as evidenced by their continued investments in expanding their network and their focus on delivering a great customer service as well as making original parts available across the Kingdom. We also continue to work together to deliver the products that our Saudi customers want, such as the recently launched Ford F-150 Raptor pickup and the new Lincoln Continental.
Q: Given the Vision 2030 reform plan, has Ford considered increasing its investment in the Saudi market? A: We are fully committed to the Saudi market and to our customers there. With Saudi Vision 2030, we see a bright future for the Kingdom and we trust that the diversification of its economy will reap positive outcomes for all industries. Our local dealer, AJVA, continues to invest in the Ford business as evidenced by the opening of the world’s largest showroom in Riyadh. We also continue working with them to deliver some of the best customer ownership experiences in the Kingdom. But our investments do not stop at the business. Ford believes in investing in the local communities where we serve our customers through a diverse and rich basket of community initiatives such as the Henry Ford Entrepreneurship Academy, which we concluded in Jeddah in March, in partnership with Effat University and the Virginia Commonwealth University, where 50 Saudi women entrepreneurs went through a three-day workshop and received professional guidance and tools to develop their businesses. In addition to this, we completed our fourth year of Driving Skills for Life in the Kingdom, delivering safe driving skills to university students in Jeddah and Riyadh. Add to this our Conservation and Environmental Grants program, which runs for the 17th consecutive year, encouraging and funding local community projects in the Kingdom and the region. Our intention is to continue the strong momentum we have in Saudi Arabia and to help create sustainability for our business and community partners.
Q: How did the distributors’ dealership network develop in the past year and what new services have you added? A: AJVA continues to invest in the Ford business and we commend them for their passion for the brand and the business overall. Thirty years into the business and they have invested heavily in growing their network across the Kingdom and continue to do so. Their recent Khurais branch is a testament to the drive of their leadership team and their ongoing ambition to take the Ford and Lincoln brands further.
The Saudi market is the largest in the region for Ford, and its dealership near Riyadh is the marque’s biggest globally, according to Thierry Sabbagh, managing director of Ford Middle East.
Q: What new autonomous driving features can consumers expect in Ford cars in this year’s model range? A: We have a lot of opportunities ahead of us as we transform Ford Motor Company into a mobility company in our region... We continue to focus on and invest in our core business and build on our strengths, while we pursue emerging opportunities with Ford Smart Mobility — our plan to be a leader in connectivity, mobility, autonomous vehicles, the customer experience, data and analytics. Ultimately, our vision is to help make people’s lives better by changing the way the world moves ... just like Henry Ford did more than a century ago.
Ford is not new to autonomous technology. In fact, most of our vehicles currently feature semi-autonomous technologies such as the adaptive cruise control and lane-keeping system, etc.
Q: Which are your best-selling models in Saudi Arabia and what type of consumers are you seeking in the Kingdom?
A: Our aim is to deliver the products that our customers in Saudi Arabia want. Currently, our best-sellers in the Kingdom are the full-size sedan, Taurus, as well as the mid- and full-size SUVs, Explorer and Expedition. Having said that, our full-size pickup the F-150 and the smaller Ranger pickup are equally in demand in the Kingdom, which is a true testament to the popularity that the Built Ford Tough range and the Ford SUV lineup enjoy. And we are very pleased with the recent introduction of the all-new Ford F-150 Raptor in Saudi Arabia. This truck epitomizes Ford’s strong truck leadership and heritage and is the segment leader hands down.