LONDON: Mercedes-Benz cars achieved a record year of sales in the Middle East in 2015, according to Mark De Haes, president and CEO of Daimler Middle East and Levant.
In an exclusive interview with Arab News, De Haes said that the Saudi market is one of the largest in the region for the company and that sales in that market have increased by 10 percent in 2015 compared to the previous year.
The company has six showrooms in the Kingdom including a new one in Abha.
During the first half of this year, the company is planning to launch the new C-Class Coupé, S-Class Cabriolet, and C-Class Cabriolet.
The CEO recognizes the increasing awareness in the region for sustainable cars and reveals that the company strategy is to present 10 plug-in hybrid cars by 2017.
These are highlights of the interview:
• Can you outline MB operations in the region in 2015 in terms of sales growth, best-selling models and dealers’ network expansion? And what is your strategy for 2016?
We have delivered more cars to customers in 2015 than ever before in one year.
We sold a total of nearly 1,872,000 vehicles (+13.4% higher than 2014) globally, posting our fifth record year in a row.
Our top selling models last year were the compact cars such as the A-Class, the CLA, and the GLA.
The Middle East is an extremely important market for us as a global car manufacturer and we are proud to say that we achieved consistent success through all channels of the business, with uninterrupted year on year growth.
We were fortunate to record another record year for the Middle East in 2015 compared to the previous year.
Last year, we developed and completed our model portfolio so today we have a model for every customer in every segment. 2015 was the year of the SUV for Mercedes-Benz and the demand this year continues.
The new models have had an excellent reception from customers: sales of the GLC, the updated GLE and the new addition to the SUV portfolio, the GLE Coupé were at record levels.
We are also expecting continued success for our Mercedes-Benz sedans and compact cars in 2016, especially as we are launching new models such as the new E-Class and C-Class Coupé.
Our growth in the Middle East will continue to set new benchmarks in every automotive respect.
• How do see the impact of decline in oil prices on the company’s sales target this year?
It is inevitable that macro-economic factors will have a certain impact on global businesses, but fortunately our sales have continued to grow and we have not been materially affected by global economic issues.
• How important is the Saudi market in the context of the regional markets? And what is best-selling MB vehicle there?
Saudi Arabia is one of the largest markets for us in the Middle East.
Our top selling models in the Middle East include the S-Class, E-Class, GLE (formerly called M-Class) and the C-Class.
It is also important to mention that we have seen substantial sales growth in our SUV and AMG models last year and we expect these sectors to continue growing over the next years.
• How did the company perform in the Saudi market this year compared to last year’s performance?
We are proud to say that our sales in Saudi Arabia have been increasing at a significant pace every year and consistently reaching new milestones. Our sales results increased by almost 10% in 2015 compared to the previous year.
• Do you see demand for hybrid and electric cars in the region and are there plans to introduce or expand these types in the region in the coming few years?
There is no doubt that sustainable cars are the future of the automotive industry.
As you know, some countries around the world have been promoting sustainable cars for many years, for both fuel efficiency and for environmental factors.
The awareness of sustainable cars is increasing in the Middle East, largely as a result of governmental focus and foresight.
Some markets in the region are seeing increasing sales of hybrid vehicles, particularly those in the Levant, and we expect this to gain momentum throughout the wider MENA region.
With the development of alternative drive systems, Daimler is the only car producer investing in all three technologies of hybrid drive, electric motors and fuel cells, with the goal of achieving emission-free mobility in the long term.
Early this year, Mercedes-Benz has laid out its plug-in hybrid model strategy, which includes the presentation of 10 new cars with this technology by 2017.
• How has the network of dealerships and service centers expanded in recent years to cope with increased sales? And what is the scope for expansion this year?
We currently have 42 outlets in the Middle East and Levant region, 21 of which are considered “3S” facilities offering Sales, Service and Spare Parts services in one location.
Our main focus this year is to take regional Mercedes-Benz outlets to the next level to further enhance our customer experience. Part of this is a distinctive new-look 3D-Black corporate identity, which will give our facilities an even more sophisticated and elegant look.
We are also delighted to introduce new retail formats to the region; in addition to the traditional retail points of sale in our showrooms, we will launch new mobile retail outlets to reach our customers in their local environments.
In the Kingdom we currently have six showrooms, located in Jeddah, Riyadh, Dammam and Abha, four of them offering Sales, Service and Spare Parts services in one location.
The recently inaugurated facility in Abha is the first in the region to showcase the latest corporate identity mentioned, as well as the new global architectural design introduced by Mercedes-Benz.
The showrooms have the capacity to display over 80 Mercedes-Benz vehicles of different models, with over 30 sales consultants serving our customers.
In addition, we have a fleet of over 110 demonstration vehicles available for our potential customers to test drive, which shows the considerable size of our operation.
• Are you planning to introduce new models in the region this year and what is their timetable?
This is another dynamic year for Mercedes-Benz with a number of new car launches scheduled.
These include the introduction of the new C-Class Coupé, S-Class Cabriolet, and C-Class Cabriolet during the first half of 2016.
Later in the year, we will continue with the same pace introducing new models to our existing vehicle portfolio.
• What programs, if any, does the company have for training of GCC national?
Mercedes-Benz runs a comprehensive training program for all Mercedes-Benz staff in this region, with official Training Certification Programs for managers, sales consultants, service advisers, technicians and more.
Each course is adapted to the GCC region and delivered by experienced Mercedes-Benz trainers. Before we launch a new product these trainers also train our technicians and sales staff on the latest features and new technology to ensure that customers in the GCC receive the latest information from highly qualified staff.
• What do MB vehicles offer to the consumer that other companies don’t?
Mercedes-Benz is an emotional brand and in this region, in particular, customers in this region are very innovation-driven with a strong appetite for customization and individuality which we offer.
The words “a Mercedes-Benz should always look like a Mercedes-Benz” still fuel our creative fire.
But what we achieve goes far beyond appearances.
Together with some of the world’s best automotive engineers, our team of industrial, textile, graphic and interface designers devote themselves to the craft of automobile making. And what we produce are vehicles that not only look, but feel, sound and perform like nothing else on the road.
Daimler: KSA market is one of the largest in region
Daimler: KSA market is one of the largest in region
Price cuts drive sales of Saudi-owned electric car
- Lucid delivers more vehicles than expected as it prepares to launch luxury new Gravity SUV
RIYADH: The majority Saudi-owned electric car maker Lucid delivered more vehicles than expected in the past three months as price cuts helped boost demand.
The company delivered 2,394 cars from April to June 30, above analysts’ predictions of 1,940.
Lucid produced 3,838 vehicles in the first six months of 2024 and needs to make more than 5,162 cars by end of the year to meet its annual output forecast of 9,000. It made 8,428 cars in 2023.
“I think at this point everything is shaping for them to achieve that,” said Andres Sheppard, senior equity analyst at Cantor Fitzgerald. Lucid will produce and deliver more cars in the second half of the year because of the usual seasonal effects on the industry, he said.
Demand for electric vehicles has grown more slowly than expected pace in the past year, under pressure from high borrowing costs, economic uncertainties and consumer preference for hybrid alternatives.
Lucid and the market leader Tesla have responded by slashing prices and offering incentives such as cheaper financing options. Lucid, which is 60-per-cent owned by the Public Investment Fund, the Kingdom’s sovereign wealth fund, cut the price of its flagship Air model by 10 percent in February.
Its new Gravity SUV model, a rival for Tesla's Model X, goes into production this year and will cost about $80,000.
Treat for local fans as Berlin set for Formula E double-header
- Germany leads both Drivers’ and Teams’ championships with Pascal Wehrlein and his TAG Heuer Porsche Formula E Team topping the tables
- Tempelhof Airport’s notorious concrete slab track set to be a tough test for drivers as the GEN3 race car competes in Europe for the first time
Formula E fans at the historic Tempelhof Airport Circuit in Berlin this weekend will, for the first time in championship history, get to cheer a German team and driver at the top of the standings going into the 2023 SABIC Berlin E-Prix double-header.
The Porsche 99X Electric has proven to be the benchmark car package in Season 9 with Pascal Wehrlein winning twice in the first three races to lead the Drivers’ World Championship and putting his TAG Heuer Porsche Formula E Team at the top of the Teams’ standings.
Great Britain’s Jake Dennis of Avalanche Andretti Formula E, the Porsche customer team, is 24 points behind Wehrlein in second and under pressure from Nick Cassidy (Envision Racing), just a point back in third after three consecutive appearances on the podium.
Double champion Jean-Éric Vergne (DS PENSKE) is only two points away in fourth having steered to victory in Hyderabad and finished second in Cape Town.
Jaguar’s I-TYPE 6 has emerged as the strongest competitor to the Porsche-powered cars since Round 4 in India. Cassidy has led the charge for Jaguar customer Envision Racing who sit just behind the German manufacturer in the standings.
The factory Jaguar TCS Racing team finally capitalized on its race-winning pace and energy management for a 1-3 result last time out in São Paulo as Mitch Evans and teammate Sam Bird (Jaguar TCS Racing) took to the podium. They find themselves 42 and 46 points from top spot in the Drivers’ table but with plenty of racing still to come.
Reigning champion Stoffel Vandoorne (DS PENSKE) sits 11th in the standings, more than 60 points back. Retaining the title now looks like a distant dream, but he has form around Tempelhof with a win and two podiums to his name. Dominating the double-header in Berlin would put the Belgian firmly back in contention.
Berlin is the only city to have hosted a race in every season of Formula E — 16 in total. The 2.4-km Tempelhof Airport Street Circuit on the outskirts of the German capital city is a unique challenge for the teams and drivers, and a favorite of many.
Saudi-backed Lucid EV cars get global launch
- The Lucid Air has already been named the MotorTrend Car of the Year and honored as one of Time Magazine’s 200 Best Innovations of 2022
BEVERLY HILLS: Just a few weeks after Lucid Motors opened their first Middle East studio in Riyadh, and four years after the Saudi government made its initial investment of $1 billion, the vehicle manufacturer held the global launch event for their debut line of electric sedans.
And Saudi support has been influential in bringing the vehicle to fruition, according to Derek Jenkins, senior vice-president of design at Lucid.
“We wouldn't be here today without the support from the Saudi Public Investment Fund,” he said. “It allowed us to really develop our technology, not just at a concept level, but all the way through the production and deliver it to customers worldwide.”
The Lucid Air has already been named the MotorTrend Car of the Year and honored as one of Time Magazine’s 200 Best Innovations of 2022.
With the full line now launched and more planned for 2023, Lucid is working to stand out in the electric car market.
“It's a relentless obsession on efficiency as well as performance and taking the technology of electric cars to an entirely new level,” Jenkins said.
“The Lucid Air is really just the first step at that. Then we go into our SUV and then more mainstream models later on, and we really want to be at the very pinnacle of the technology.”
As they premiere their cars worldwide, Lucid has an eye on the Middle East, hoping to boost the prominence of electric vehicles in the region. They revealed plans in May for the construction of a world-class Lucid production factory in Saudi Arabia with a capacity of 155,000 electric vehicles. The plant will be located in the King Abdullah Economic City.
Jenkins continued: “The car looks amazing on the road over there. And we have a lot of people, not just from Saudi Arabia but all over the Middle East, that are fans of Lucid, and they're following Lucid very closely. So we're super excited about that.”
REVIEW: Pizzazz and power – The Ferrari F8 Spider
- The Italian supercar maker has produced an exhilarating and head-turning open-top icon
DUBAI: I’ve had a thing about Spiders — the car model, rather than the eight-legged variety — ever since Dustin Hoffman drove off into the sunset with Katharine Ross in the movie “The Graduate,” but at last I’ve had the chance to drive the real thing.
The Ferrari F8 Spider is a vastly different car from the one all those years back in the movie, but a few hours behind the wheel shows exactly why Dustin got his girl. The Ferrari F8 is just about the most exciting Italian super-sports car on wheels (although I must admit I have not yet tried the new “Aperta” version of the v-12, which has just been unveiled in Italy.)
Why Spider? The term goes back to horse-and-carriage days — it was a type of carriage with a small body and large spoked wheels that had a distinctly arachnid look. But Ferrari has laid claim to the design by offering virtually all its models in “Spider” version — an open top sports car that allows you to feel the wind and sun on your face as you go through the exhilarating Ferrari driving experience.
The technology has certainly moved on. The Graduate Spider had a quaint hand wind-down canopy. In the F8, the roof slides back silently and electronically in a few seconds, a feat you can accomplish at the touch of a rooftop button and while traveling at speeds up to 45kph. One pedestrian stood jaw-dropped in amazement as I did this on Jumeirah Beach Road in Dubai, probably expecting the roof to fly off in the jet stream.
But everyone stares at a Ferrari. The pizzazz factor is extreme, and the sleek but powerful lines of the F8 certainly draw the stares. If you like to be made a fuss of on five-star hotel forecourts, this is the car for you.
Equally, if you like neck-jerking acceleration and a roaring exhaust, this is your car. The 3.9-liter V8 twin turbo engine does 0-100kph in a scary 2.9 seconds and can reach a top speed of nearly 340kph.
Even at lower speeds, the experience is absolutely exhilarating, especially inside the Ferrari “cockpit” with the sensation of being strapped to a fighter jet. The car responds to each touch of a pedal or flick of a switch with an instant and frightening surge in power.
The acceleration in the F8 Spider is truly awesome, and even a bit frightening, especially with the top down. Flick the drive mode selector into “race” and you could be on the test track at Marinello in Italy.
I got the distinct impression at one stage of my test drive — when I gunned it as fast as I dared — that the car was about to lift off front-first from Sheikh Zayed Road, but of course that is an impossibility. The sleek aerodynamics and incredible road-holding, steering and braking technology leave you in control of the car even at eye-ball popping acceleration. Racing out of a sharp bend with the tires squealing and G-forces mounting is a real thrill.
Ferraris are supposed to be red, of course, but the one I drove was a classy golden brown, which I thought contrasted better with the yellow “prancing horse” badge. Even more potential for head-turning.
And now, the bad news. The Ferrari F8 Spider will cost in the region of 1 million dirhams ($270,000) for starters, and extras and customization will add to that. But if you want an iconic piece of high technology supercar with all the heritage of the prancing horse, you might think of it as a bargain.
REVIEW: Heritage, power and urban sophistication — Aston Martin DBX
- The British car maker has made an SUV that will appeal to Mr. and Mrs. Bond
DUBAI: I was privileged to get a glimpse of the Aston Martin DBX a few years back at the carmaker’s main production plant in Warwickshire in the UK when it was just in the concept stage, and it looked a knock-out then.
A super SUV from the maker of the vehicle of choice of James Bond, the legendary British spy? Who would say no to that idea? Certainly not elite car aficionados in the Middle East, that’s for sure, and I recall telling Aston executives back then that they should get the car to the Gulf as quick as possible, because it was sure to be a winner.
A lot has happened at Aston since then, but it is reassuring to know that the company has lived up to the promise of the super SUV, which can now be seen and bought in the cities of the Gulf. It’s also reassuring to know that my judgement back then has been proved correct — the DBX is a real show-stopper.
Aston has come under new management over the past year, to help it through another bout of financial pressure brought on by a combination of Brexit, stock market woes, and the shock of the COVID-19 pandemic.
But it has not let those problems distract it from the main job — designing, manufacturing and selling top-class vehicles that have a distinctive British flavor, as well as an edge of excitement and — even — danger that other elite marks do not possess. The Bond heritage.
But how to combine that with the comfort, accessibility and adaptability of an SUV? Other super-car manufacturers have tried it, with varying degrees of success, but I think the DBX has produced an all-terrain vehicle that retains the pizzazz and glamour of its sports car stablemates better than most.
In the DBX, you could imagine Mrs Bond dropping the kids at school and doing a supermarket shop before handing the keys back to James for a spot of clandestine espionage. Mr Bond would be pleased to have the chance to drive it, I’d guarantee.
The one that I was lucky enough to test in Dubai was a real head-turner. My favorite hotel valet man at one of Dubai’s glitzy five-star hotels — who knows a thing or two about elite cars, having parked all of them — took a sharp intake of breath at the matt Xenon grey body paint that made the DBX look quite sinister, but also very muscular and powerful.
The wheels are big, even by SUV standards and would be sure to get you to the crest of even the most demanding sand dune, if that was your aim, or just to add to the road-holding qualities the DBX has even at high speeds and sharp corners.
A 4.0 litre V8 turbocharged engine — from Aston’s German partner Mercedes — speeds you from 0 to 100km in 4.5 seconds and deliver a top speed of just under 300kph. Mrs Bond will be fine with that. James might want just a little a bit more but that’s a minor quibble — and in any case he could flick it into Sport+ mode when in hot pursuit of a villain.
Aston’s sound system — encased in leather like the rest of the interior — belts out the decibels through 14 strategically placed speakers that allow you to hear the music even above the distinctive deep-throated growl of the engine.
It is an SUV for sure, with plenty of space and comfort in the back and a boot that will carry everything you’ll want, including the dog. (One option is a pet-package that includes a washing facility for muddy post-walk paws, which would be equally useful for sandy feet.)
One thing I really liked was a huge sliding roof that pulled back to give you a skyline view and instantly made the interior look even more spacious. Great for night-time cruising in the high-rise cities of the Middle East.
The DBX starts at AED837,000 ($228,000), but extras — courtesy of Aston’s Q department — will probably make it a near AED1 million investment. That’s well worth it for a car that combines heritage, power and urban sophistication in one very head-turning package.
