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ALJ plans to start car accessories subsidiary
Published in The Saudi Gazette on 15 - 01 - 2012


Saudi Gazette
Cars could be imported semi-nude, just the very basics … a chassis, an engine, four wheels. The customer could then design his car according to his current and future needs.
– Dr. Saad Attiya Al-Ghamdi, Senior Deputy for the President of ALJJEDDAH — Abdul Latif Jameel Company (ALJ) plans to start a car accessories subsidiary in the Kingdom of Saudi Arabia, according to Dr. Saad Attiya Al-Ghamdi, Senior Deputy for the President of ALJ.
Al-Ghamdi revealed the plan on the sidelines of the press conference held here Friday to refute media reports that there were problems with the cruise control of the Toyota Land Cruiser Sports Utility Vehicle (SUV).
He said the proposed new business would offer ALJ customers accessories of their choice. This will create a stronger bond with customers, he added.
At this stage, Al-Ghamdi said, he was not able to reveal the starting date of the business but said it was already “beyond second gear”.
According to data from the Jeddah Chamber of Commerce and Industry, there are 18 unauthorized accessories-fitting businesses in the Kingdom, mostly in Riyadh and Jeddah.
There are no such officially registered companies in the country.
Dealers believe that consumers have become more sophisticated and want cars that look good and have top resale value.
They say that American car manufacturers still hold a sizable chunk of the Kingdom's auto market in 10 of its most populated cities because American cars have many more accessories.
Attiyah Hertani, of Aljewaher used-car showroom on Sitteen Street, demonstrated the current sales pitch to customers. “It's true this Crown Victoria has 105,000 kilometers on it but look, it has a sunroof, heated leather seats, two-tone paint job, speed control, split air-conditioning and four speakers with equalizer. At SR62,000 it's a steal!”
A pilot study conducted in mid-2011 by Saudi Gazette, in collaboration with Prince Sultan College for Tourism and Business, Jeddah Campus (PSCJ), showed that there was a heightened awareness among students about car accessories.
The opinion survey of 480 full-time students between the ages of 18 and 22, of whom 64 percent owned cars, found that more than 72 percent were aware of the difference in the number of accessories of cars imported by other Gulf Cooperation Council (GCC) auto dealers and what was available on the Saudi automotive market.
Yasser Arafah, a graduating senior, said his brother had to fly to Dubai last year to buy a “two-seat, hard top, automatic transmission, champagne-colored convertible Mazda, because it was not available in Jeddah”.
Al-Ghamdi said the new business initiative would benefit customers and dealers. Customers would get their accessories from ALJ paying either in cash or by installments, and dealers would have some measure of control over their spending on spare parts and the management of their maintenance shops and end-of-year stock. He said dealers are now guessing what is needed by the market. “It is an international trend, which started more than 60 years ago in the United States.” On the question of accidents caused by poorly-fitted cars, Al-Ghamdi said: “It happens, there can be no denial of it. We don't have well-researched data but our friends in the auto insurance business have plenty of stories to tell. Currently there is no legal responsibility associated with poorly-fitted cars.” He said the fitting of accessories changes a car's aerodynamics. At speeds of 100 kilometers and more, the vehicle is more prone to accidents.
Al-Ghamdi said cars could be imported “semi-nude, just the very basics … a chassis, an engine, four wheels. The customer could then design his car according to his current and future needs”.
“An authorized auto dealer would be well-equipped to extend the warranty to the entire vehicle including the parts fitted in the dealer's workshop with the technical support and backing of the manufacturing company. Over time it would be a tremendous boost to the Saudization drive. We would be able to train and employ more and more national technicians and mechanics,” he added. __


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