Long before this current bout of global recession introduced
people to the realities of a new economic order, it was the woebegone
automotive sector that made the daily news. For over a decade now there
has been an alarming slump in car sales in markets traditionally
expected to have the highest grossing economies, like the US and
Europe.
This protracted nosedive has also had a ripple effect throughout
the industry so that loss of revenues and job cuts in hundreds of
thousands are no longer limited to car manufacturers, but now involve
retailers, servicers, part makers and suppliers. The demise of this
sector was the real precursor to the current economic predicament.
And we're not talking about small- to middle-sized companies going under: The latest word on the news circuit says that the Big 3 car makers have less than a year to find quick funds to survive the credit squeeze. General Motors, Ford and Chrysler have been reported to have too much stock and negative liquidity to continue operations of all their models.
These companies are facing further scrutiny at home for closing down manufacturing plants, laying off workers and scaling back on their traditional brands. Rumour has it that brands like Jeep, Saab, Hummer and Mazda are at risk. Between the North American and the European market, sales have gone down 19-25 per cent compared to last year. It seems like just another addition to a long list of multibillion-dollar corporations waiting for a bail out that even Obama would not favour.
But the most interesting part about this sad story lies under the bold headlines of fresh merger talks that never end. The future of the automotive industry does not lie in cutbacks or tie-ups but a change in perspective.
Since these mature markets are facing severe corrections, it has been the emerging markets like Dubai in UAE that have caught the attention of sales strategists worldwide. Not only have car sales in the Middle East and the GCC escaped the global financial crises unscathed, they are beating growth records set by countries like China and India, which were largely expected to be the biggest markets.
In the UAE alone, sales are up a whopping 34 per cent this year, and analysts report that there are no signs of this pace slowing down.
The best part of this new perspective is the region's commitment to a diverse and competitive market. Take a walk down any street in Dubai and you'll come across all kinds of cars. From the budget friendly to the high end icons of luxury, virtually every car market that is facing extinction in the Americas or Europe is actually thriving here.
So if hot names like Renault and Honda are planning to invest more in places like Dubai, perhaps this perspective is worth your consideration as well. Market trends in this global age function on perpetual growth. A thriving automotive sector brings in billions of dollars in revenue, and this automatically leads to more jobs. Click through some of the many job categories available on Jobs In Dubai's job board and you'll realize that this prosperous sector will need all sorts of positions. Create a JID Profile to match current opportunities in sales, marketing, accounting, manufacturing, IT, engineering, retail and management and set yourself apart as a global jobseeker.
And we're not talking about small- to middle-sized companies going under: The latest word on the news circuit says that the Big 3 car makers have less than a year to find quick funds to survive the credit squeeze. General Motors, Ford and Chrysler have been reported to have too much stock and negative liquidity to continue operations of all their models.
These companies are facing further scrutiny at home for closing down manufacturing plants, laying off workers and scaling back on their traditional brands. Rumour has it that brands like Jeep, Saab, Hummer and Mazda are at risk. Between the North American and the European market, sales have gone down 19-25 per cent compared to last year. It seems like just another addition to a long list of multibillion-dollar corporations waiting for a bail out that even Obama would not favour.
But the most interesting part about this sad story lies under the bold headlines of fresh merger talks that never end. The future of the automotive industry does not lie in cutbacks or tie-ups but a change in perspective.
Since these mature markets are facing severe corrections, it has been the emerging markets like Dubai in UAE that have caught the attention of sales strategists worldwide. Not only have car sales in the Middle East and the GCC escaped the global financial crises unscathed, they are beating growth records set by countries like China and India, which were largely expected to be the biggest markets.
In the UAE alone, sales are up a whopping 34 per cent this year, and analysts report that there are no signs of this pace slowing down.
The best part of this new perspective is the region's commitment to a diverse and competitive market. Take a walk down any street in Dubai and you'll come across all kinds of cars. From the budget friendly to the high end icons of luxury, virtually every car market that is facing extinction in the Americas or Europe is actually thriving here.
So if hot names like Renault and Honda are planning to invest more in places like Dubai, perhaps this perspective is worth your consideration as well. Market trends in this global age function on perpetual growth. A thriving automotive sector brings in billions of dollars in revenue, and this automatically leads to more jobs. Click through some of the many job categories available on Jobs In Dubai's job board and you'll realize that this prosperous sector will need all sorts of positions. Create a JID Profile to match current opportunities in sales, marketing, accounting, manufacturing, IT, engineering, retail and management and set yourself apart as a global jobseeker.
Embedded References:
http://www.arabianbusiness.com/526105-edit-uae-car-sales?ln=en
http://www.gulfnews.com/articles/08/10/02/10249165.html
http://www.iht.com/articles/reuters/2008/10/17/business/OUKBS-UK-AUTOS.php
http://blogs.wsj.com/deals/2008/10/20/what-if-the-us-auto-makers-dont-survive/?mod=googlenews_wsj
http://en.wikipedia.org/wiki/Big_Three_automobile_manufacturers
Leave a comment