The FINANCIAL — Nissan Motor Co., Ltd. (NML) and Al Dahana FZCO announced on October 12 the establishment of a joint venture company – Nissan Gulf FZCO (NGF) – to enhance Nissan's marketing and sales strategy in key GCC markets and introduce a fully fledged financial services platform through all Middle East and North African countries.
Nissan Gulf FZCO will be responsible to enhance Nissan's marketing and sales strategy, dealer development and front line management in Saudi Arabia, Abu Dhabi, Kuwait and Bahrain, with the aim of selling 160,000 vehicles a year by 2012. These four markets will represent more than 40 percent of Nissan sales in the region by 2012.
NGF will introduce a fully fledged financial services platform by partnering with GAPCorp, a global third party administrator. The finance and insurance platform will offer a comprehensive range of Nissan branded finance and insurance products throughout the Middle East and North African countries, with products such as extended warranty, road side assistance, guaranteed auto protection (GAP) insurance and motor insurance, which will be fully synergized with local market requirements, to promote a one-stop-shop to Nissan buyers.
"The Middle East is one of the fastest growing auto markets and is a strategic area of focus for the future of Nissan," said Colin Dodge, Senior Vice-President of Nissan Motor Co. Ltd. "Al Dahana is a strategic partner that will offer sales, marketing and dealer development expertise to sustain our success in key markets of the region."
NGF activities will substitute those of Nissan Middle East FZE in Saudi Arabia, Abu Dhabi, Kuwait and Bahrain.
Mr. Khaled Al Juffali and Mr. Nasser Watar represent Al Dahana's shareholders in NGF as Chairman, and Vice Chairman and Managing Director, respectively.
"We are excited about the opportunity to be a part of Nissan's business in these four countries," said Khaled Al Juffali. "We are confident of our ability to deliver on Nissan's brand promise by bringing our expertise and understanding of the local markets to supercharge Nissan's operations and exceed customers' expectations."
In May 2008, NML announced the Nissan GT 2012 five-year business plan focusing on the company's long-term performance and commitment to stakeholders. Geographic expansion with a view to establishing the basis for a long-term presence in these markets is a cornerstone of the plan. In the Middle East, sales volume is expected to double, from 200,000 units in 2007 to more than 400,000 units in 2012, with a commitment on significant increase in market share. Together with the aggressive product lineup of both Nissan and Infiniti brands, the establishment of NGF will accelerate business growth and quality services in the region.
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