GM Middle East Record Growth Continues In First Quarter 2005

35% increase in sales over equivalent period in 2004
Sales of 21,769 units in first three months of 2005
Chevrolet car sales up 48% in same period

Dubai, United Arab Emirates – 10 April 2005 - General Motors Middle East sales witnessed outstanding growth in the first quarter of 2005, with unit sales of almost 22,000, an increase of 35% over figures recorded in the equivalent period in 2004.

This follows a record year in 2004, when General Motors recorded total sales of 88,852 units in the region, a 55% increase on the previous year’s performance.

The announcement was made at a press lunch held following a strategic decision made at the end of 2004 to take a new, transparent approach to the way General Motors communicates with its customers through the media. This event is the first of a series of such events planned in the region in 2005.

“Our success is being driven by encouraging sales increases for almost every GM brand,” commented Terry Johnsson, Managing Director, GM Africa & Middle East. “This outstanding result highlights that our global sourcing strategy designed to bring the right products to the Middle East region is paying dividend and that market acceptance of these great products is high.”

GM’s success has been led by strong results in several markets, in particular Saudi Arabia, Kuwait, Oman and Qatar. In Saudi Arabia, results were up by 47% over last year but, perhaps more significantly, the results were 15% above target. Kuwait sales were 6% above target while Oman and Qatar combined were 8% above target.

“This year we will be launching the Hummer H3, the Cadillac DTS, the Saab 9-7 SUV and the Chevrolet Spark,” added Johnsson. “Our continued success is driven in part by the demand for our small Chevrolets so this new model, which competes in a very competitive segment, will allow new customers to enjoy the ownership experience that is Chevrolet.”

In fact, much of the growth enjoyed by GM in the Middle East can be attributed to the Chevrolet lineup. While GM registered a 35% increase in Q1 sales versus the previous year, Chevrolet sales alone enjoyed a massive 48% increase in the first three months of 2005.

“Chevrolet has an unmatched range of products in the region from the affordable Aveo to the legendary Suburban SUV,” added Johnsson. “We are very pleased that sales of the Aveo, Optra and Epica have continued to grow as this proves that Chevrolet is now the complete car brand, offering class leading levels of reliability, comfort and quality.”

Cadillac also continues to record significant success. 2004 saw the re-birth of Cadillac driving regional growth of 50% over figures recorded in 2003. This increase has continued into the first quarter of 2005, with sales up 10% over last year even though the eagerly awaited, new STS is only just hitting showroom floors around the region. Customer interest in this new model is already high and GM is confident that Cadillac’s blend of sophisticated performance, purposeful technology and ultimate luxury will lead to further increases in sales.

“It is not just in retail car sales that we are seeing tremendous growth,” added Johnsson. “Fleet buyers are increasingly turning to GM for their transportation requirements. Best sellers like our Chevrolet Caprice and Lumina models continue to drive fleet orders and we have recently signed significant purchase agreements with companies like Saudi Aramco as well as with police forces all over the region.”

“With the increase in sales comes the growth in other areas of our business, such as ACDelco and GM QuickService Centres and Genuine GM Parts and Accessories,” he added. “Particular credit must go to our retail partners, however, because it is their efforts that ensure we always exceed our customer’s expectations.”

CONTACT(S):
Saada Hammad
Communications and Public Relations Manager
General Motors Middle East
Tel (+9714) 3143350
e-mail saada.hammad@gm.com

About GM
General Motors, the world’s largest vehicle manufacturer, was founded in 1908 and has been the global automotive sales leader since 1931. GM today employs about 324,000 people around the world. It has manufacturing operations in 32 countries and its vehicles are sold in 200 countries. In 2004, GM sold nearly 9 million cars and trucks globally, up 4 percent from the previous year, and the second-highest total in the company’s history. GM’s global headquarters are in Detroit.

GM has been operating in the Middle East since the early 1940s. GM’s vehicle brands sold in the region are Cadillac, Chevrolet, GMC, HUMMER, Opel and Saab supported by a unique set of customer-focused services. GM parts and accessories are sold under the GM Parts and ACDelco brands. The regional office in Dubai covers the company’s operations in Bahrain, Iraq, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria, UAE and Yemen.

In 2004, GM sold around 89,000 vehicles in the Middle East, representing a 55 percent increase over figures recorded in 2003, and the company continues to introduce pioneering programs in the region. More information on GM and its products can be found on the company’s consumer websites www.gm.com and www.gmarabia.com.