An exciting new product and improved quality control are two top priorities for Land Rover as world economies start to come out of recession.
Phil Popham, Land Rover's global managing director, says that one of the most exciting launches will be the much-anticipated LRX, a compact, five-seat SUV that was first unveiled to Middle Eastern journalists as a concept car in London in November, 2007. The production version of the LRX will be rolled out in the second half of next year.
According to Popham, the production LRX will be very close in "design intent, premiumness of the car, engineering feasibility, performance and refinement" to the concept. "It will be the closest to the concept car as can be engineered feasibly.
"It will be the smallest Land Rover, the lightest and the most fuel-efficient but it will still have the greatest breadth of capability and be very competitive off-road."
Robin Colgan, the managing director of Jaguar Land Rover Middle East, is confident the LRX will be a success in the region.
"If you walk down the size scale [of SUVs], you won't find another compact vehicle with this level of luxury," he says. "I don't think it has any competitors - it will appeal to buyers looking for a premium saloon, a two-seater sport car or an SUV."
Popham says that 2009 was a tough year for Land Rover, with a 22 per cent drop in sales at the start of the year, but a 20 per cent increase for last year's Q4 over the same period in 2008 is an encouraging sign that the company is emerging strongly from the global economic downturn. He also says the Middle East continues to be an important market for the brand's future.
Colgan adds that, while growth slowed in the Middle East last year, "the market is full of car enthusiasts who know more about the product than we do", and he is confident the loyal buyers will remain faithful to the brand.
"Recovery isn't necessarily the right word," says Popham. "Stability in established markets and growth in developing markets are what we are trying to do. We took some quick, decisive action so we'd be in a position first to survive and then to position ourselves to exploit opportunities through new products on emerging markets."
The main action taken by the company was to ensure "ideal levels of stock" rather than allow distributors to have an oversupplied inventory.
Colgan says this is definitely the case in Middle East showrooms. "We have a three to four month waiting list after two months of constrained supply," he says. "It is early days but the response on the stand [at the Dubai Motor Show] to the new products was strong, the outlook is good, but we need a few more months to see if we again have a sense of stability."
Popham also cites the purchase of Land Rover by the Indian automotive giant, Tata Motors, as an important factor in ensuring the brand survives.
"Tata's timing was very difficult, when they took over on the second of June, 2008 - the recession was deepening, it was a long transition period, but they are focused on stability in the long term."
Quality control issues that have plagued Land Rover, with less than flattering results in the JD Power surveys since 2001, have also been addressed, according to Popham. JD Power surveys have given Land Rover products consistently high scores for performance and design but the scores for reliability have always been lower.
"We have come fifth out of 38 for sales satisfaction [in JD Power surveys] and we have been near the bottom of the pile [for quality] in the early years, but we have sat down with JD Power and looked at the areas that needed to be addressed," he says. "When we identify problems in the field, our engineers will get to understand what is going on and fix it."
Land Rover's campaign to produce more reliable vehicles has taken the company's car tester to Dubai for hot weather testing and Russia for cold weather testing.
"We have permanent test engineers now based in Dubai and we increase the number of engineers to test the vehicles in the worst weather from April and May onwards," says Colgan.
"We want to certify that our vehicles will work at the highest temperatures - we take them up and down Jebel Hafeet, to the Dubai Autodrome for fast laps, over big sand dunes, and our objective is to destroy the vehicle, figure out what failed and fix it."
"If our cars can survive Russia and the UAE, they can survive anywhere in the world."
glewis@thenational.ae
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
BUNDESLIGA FIXTURES
Friday (UAE kick-off times)
Cologne v Hoffenheim (11.30pm)
Saturday
Hertha Berlin v RB Leipzig (6.30pm)
Schalke v Fortuna Dusseldof (6.30pm)
Mainz v Union Berlin (6.30pm)
Paderborn v Augsburg (6.30pm)
Bayern Munich v Borussia Dortmund (9.30pm)
Sunday
Borussia Monchengladbach v Werder Bremen (4.30pm)
Wolfsburg v Bayer Leverkusen (6.30pm)
SC Freiburg v Eintracht Frankfurt (9on)
RESULTS
6.30pm: Handicap (rated 100 ) US$175,000 1,200m
Winner: Baccarat, William Buick (jockey), Charlie Appleby (trainer)
7.05pm: Handicap (78-94) $60,000 1,800m
Winner: Baroot, Christophe Soumillon, Mike de Kock
7.40pm: Firebreak Stakes Group 3 $200,000 1,600m
Winner: Heavy Metal, Mickael Barzalona, Salem bin Ghadayer
8.15pm: Handicap (95-108) $125,000 1,200m
Winner: Yalta, Mickael Barzalona, Salem bin Ghadayer
8.50pm: Balanchine Group 2 $200,000 1,800m
Winner: Promising Run, Pat Cosgrave, Saeed bin Suroor
9.25pm: Handicap (95-105) $125,000 1,800m
Winner: Blair House, James Doyle, Charlie Appleby
10pm: Handicap (95-105) $125,000 1,400m
Winner: Oh This Is Us, Tom Marquand, Richard Hannon
THE SPECS
Engine: AMG-enhanced 3.0L inline-6 turbo with EQ Boost and electric auxiliary compressor
Transmission: nine-speed automatic
Power: 429hp
Torque: 520Nm
Price: Dh360,200 (starting)
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
