BMW has the wheels in motion for a greener future

BMW enjoyed a five per cent regional sales growth last year on the back of new models – such as the X6 – helping it to maintain its worldwide status as top of its class.

The German manufacturer is continuing to invest heavily in recycling and ensuring its cars are more environmentally friendly with the first hybrid model due on the market in the fourth quarter of this year. BMW Middle East's Managing Director, Phil Horton, sat down with Emirates Business to discuss how the company plans to continue its success in the difficult year ahead.


Do you think your recycling scheme will take off in the Middle East?

I believe it's something that will come to the Middle East because of the growing awareness of green issues. Recycling is at an advanced stage in Europe and people can take their old BMW to an official centre to be dismembered but I think that's 10 years away here. As a first stage, recycling tyres could have massive benefits in the UAE as the authorities will want to show they are taking these things seriously.

Why do you think people in the region don't appear to care about recycling?

Green issues are always driven by governments, so while drivers may be favourably disposed to being greener things won't happen until they are told they have to be. In Europe, the European Economic Community (EEC) is driving car manufacturers to make these improvements so they have to to hit their targets. In all GGC countries the price of petrol is also artificially low so if governments want to make an impact on emissions, it would help if gas was priced more realistically.

The X6 ActiveHybrid will cost about 20 per cent more than the regular model. Will this put people off?

Many sales will be limited to those who have one as part of a wider fleet. I don't envisage a huge take up of hybrid technology in the Middle East, not just because of the price premium but because gas is so cheap the motivation to look for cars that have 20 to 25 per cent better fuel efficiency is not there.

How important is the Middle East to BMW?

In terms of sales, last year we sold just under 1.5 million cars worldwide, 15,000 of which were in the Middle East. Although it's just one per cent of our market the mix of products leans heavily towards the top end. We sell more Seven Series, X5 and X6s than any European country except Germany, as that's the home market, so we punch well above our weight for global profitability.

You recently announced a five per cent sales growth rate for last year. How do you expect to fare this year?

If someone says we can have the same volume as 2008 [almost 16,000 BMWs and Minis] I will take it for 2009. I think there will be a slight decline but not as much as people think it will be.

Will the region be even more important this year in light of the credit crunch?

It will become more important because overall, car manufacturers are either stable or in decline. Many people are also looking to migrate to smaller cars but with the emphasis on bigger vehicles here there is every opportunity for the Middle East to increase its importance.

What do you think sets BMW apart to make it top of its class worldwide?

The single most important influence on sales is the models on offer. So if you have a strong model line up, you will be the market leader and I think that's the main reason for our success – especially because we have a younger product range.

Is your involvement in the Abu Dhabi Grand Prix positive for the local market?

Formula One is a competition with internal challenges. It is under pressure because of the withdrawal of sponsors but it is one of the most widely watched events. Our Abu Dhabi importers are extremely positive about it because anything with a worldwide following is bound to create interest in the local community. We saw it in Singapore last season where the Grand Prix not only boosted the economy but helped increase car sales too.

What car do you drive and why?

I drive a Seven Series but that's because I have to drive the top-of-the-range model. The 750il is a superb motorcar but if I was left to my own devices, I'd drive an X6.


PROFILE: Phil Horton Managing Director, BMW Middle East

Phil Horton, 53, came to Dubai in April 2007 as the Managing Director of BMW Middle East after spending more than two years as Sales and Marketing Director for BMW South Africa.

The Briton grew up in West Yorkshire but moved south to study at Southampton University. Horton has spent his career in the motor industry and clocked up more than 10 years with BMW.

He lives in Jumeirah Islands with his wife and daughter.

Follow Emirates 24|7 on Google News.