General Motors tells Middle East customers, dealers, it is committed to oil-rich region

GM assures Mideast it remains open for business

DUBAI, United Arab Emirates — General Motors’ Middle East head said the oil-rich region’s operations are a “vibrant” part of the automaker and remain open for business, despite its bankruptcy protection filing.

In a briefing with reporters in Dubai on Tuesday, the company’s Middle East President Mike Devereux emphasized GM’s commitment to the region and said none of the auto maker’s Mideast operations is affected by Monday’s filing — the fourth-largest in U.S. history and the largest for an industrial company.

“Our operations here continue unchanged,” Devereux said.

Devereux also drilled home that point in a conference call with the region’s dealers late Monday night. In an interview with The Associated Press, he said he planned to keep stressing the point in the days ahead.

The emphasis reflects the importance GM places on a region that still has a hearty appetite for the large vehicle critics say helped run the U.S. auto giant into the ground.

GM sees the Middle East, and particularly the wealthy Gulf states, as a growing market. The region has a deeply entrenched car culture, with many buyers opting for luxury cars and gas-guzzling sport utility vehicles.

The automaker recently launched the Cadillac CTS-V, Cadillac Escalade Platinum, Chevrolet Traverse and GMC Sierra Denali in the Middle East, and plans to roll out other models, such as Chevrolet Camaro, later in the year.

Devereux said GM was a “vibrant, profitable business” in the Middle East, and is gaining market share in the region despite a 19 percent drop in sales during the first quarter. He said the industry as a whole saw a 21 percent slide in the region during the first three months of the year.

There has been speculation a buyer for GM’s Hummer brand could emerge from the region’s investment funds, which have taken stakes in other premium brands like Ferrari and Mercedes-Benz maker Daimler AG.

Devereux said he could not comment on negotiations for the division, but did note that “Hummer is obviously a strong brand, an iconic brand … in the region.”

GM’s Middle East arm operates as a separate distribution company from its U.S. parent. The company said the region and other overseas markets were not included in Monday’s filing.