Rumor was correct...........

[Rohit]

Confirmed news.
Bahwans (Suhail Bahwan group) are taking over BMW distributorship......

[Neo]

well I guess its a good thing. Bahwans always knew their stuff. If they will apply the same concept they apply with their other Automobiles companies, than I guess BMW wont be so bad of a car to own

No way! Wow. When is this happening?

[muscati]

It was confirmed about three weeks ago. It's no longer a rumor. It is a fact. Suhail Bahwan group has been advertising in UAE papers for the past few weeks looking for BMW mechanics, technicians and so forth with a prominent BMW logo at the bottom of the advert.

From what I heard they will be building a showroom at Sogex hills opposite of the Qurum shopping area. Initially they will operate from OTE's showroom in Ghala. It's the showroom that previously used to house Cadillac but now Cadillac has been moved down the street to the showroom that used to previously have OTE 4X4 cars. Service will probably in OTE also but maybe at a dedicated location, probably in Wadi Kabir.

Al Hashar is not letting go of BMW easily. National Automotive is putting up quite a fight and the case still needs to be resolved in court. In a best case scenario we'll end up with two authorized BMW dealers in Oman and BMW owners and shoppers will benefit from the price war.

[DukePhantom]

I really hope so Muscati ... I do ADORE that Car .. !!

[Invincible]

Muscati,

Im not clear about what's happening. Does Al-Hashar want to sell it off? What fight are they putting up with? What case needs to be resolved in court?

[Smile]

Invici, I think Al Hashar didn't like the idea of having 2 dealers for same brand while each and every brand has single dealer. Speaking from customer point of view, I think this is great and wish every brand has more than one dealer, I like that the price war thingi.



By the way, I have fully confidence with Bahwans, simply they know how to market their stuff. <img src="/threads/images/graemlins/smile.gif" alt="" />

[Invincible]

Thanks for the info! I dont get it though, Rohit said that Bahwans are taking over the distributorship, then Muscati said that National Automotive isnt interested in giving up, and that they're figting a case in court.

What's the case? are businesses allowed to have more than one dealership for the same brand? just wondering. Any new laws? Suppose I wanted to open up a dealership for Mercedez, what's the deal? Zawawi will sue me?

[Hey_U]

<i>What's the case? are businesses allowed to have more than one dealership for the same brand? </i>



Since Oman joined the WTO in Nov 2000, it has to abandon monopoly to some extents.You could have as many dealrs, if suppliers agree.



In favor of Al-Hashar:

However, Al-Hashar could get away with it, as there is a particular article in WTO rules which allows state monopoly grant ,albeit with some conditions.



In favor of Bahwan:

The article also obliges Oman to make sure that the behaviour of such service suppliers (Al-Hashar) is always consistent with the general obligations and specific commitments.









One more rumor is still going around,this is a bizarre one though.Al Futaiym is considering a dealership for Toyota in Oman.

[Rohit]

Invin.....

Bahwans are not buying National Auto. They are floating another company which will deal in BMW cars.

Whether National Auto will continue with BMW or not is not yet known.

Oman removed the restrictive agency law about 2/3 years back.

Any manufacturer can appoint or change the distributor without paying terminal compensation or royalty.

The existing distributor can sue and if the court deems that the termination was invalid, then the manufacturer has to pay a compensation of last 3 years average profit made by the existing chap.

The manufacturer is not obliged to renew the distribution.

Most of the agency agreements have sales/service targets which can be used to justify termination of distribution.

Nothing can stop BMW from stopping all supplies to the existing dealer and thereby bringing their operations to a halt, if they wish.

[copdot]

Thats correct Rohit.

And Hey U, this restrictive agency law is by a Royal decree not by WTO. And it applies to all categories, not just automotives.

[Hey_U]

Thanks for informing me codpot,



but wasn't the restrictive agency law decreed as to comply to the WTO rules? if you also notice, it was decreed at the same time of joining WTO.



regards

[copdot]

No it wasn't Hey U. This decree came into effect before Oman got the membership of the WTO. And it was done to revitalise the economy and refresh the outdated company laws which were in place since a long time.

I am trying to find the exact date and decree for you. I'll post it as soon as I have it.

Cheers!

[Invincible]

Rohit,

Thanks for being informative. Now it's crystal clear. It's funny though, this restrictive agency law was decreed, but for example National Auto still has the right to sue. Care to enlighten me? Im being a little thick today!

[Hey_U]

codpot, As I stated above, it's to do with WTO. I went back to some sources and was assured that it's to do with the WTO rules.





------

The "dealer protection" law or "agency law" , which Oman had previously,a commercial agent was deemed exclusive for the products and territory relating to the appointment. It also entitled a commercial agent to compensation upon the foreign principal's termination or non-renewal of the relationship without just cause.Under these laws, terminated commercial agents may also be entitled to block the foreign principal's imports into the relevant country, pending an amicable settlement or court judgment.



However, Oman had to liberalise the market to comply with WTO rules and bilateral trade treaties.



That's why the "Sultani Decree 73/96" amended the Omani Commercial Agency Law.



73/96 decree:



-permits the appointment of more than one commercial agent for the same product in the same territory.

-helps clarify a foreign principal's right to de-register the parties' agreement (at the Ministry of Commerce and Industry) upon expiration or cancellation of the commercial agency.



-The decree does not alter an Omani commercial agent's existing contractual rights (including exclusivity), nor its rights (unaffected under Omani law) to claim compensation from its foreign principal for unjustified cancellation or non-renewal of their relationship.



------



source : Howard L. Stovall , Attorney at Law.

[muscati]

There are a million stories going around and you have to go through them with a fine sifter to get to the truth. What we know is this: In January National Automotive suddenly fired their general manager, the very same man who they used to credit with the phenomenal success of BMW since the mid 90's, and accused him of various crimes. They withheld his passport and asked the ROP to investigate.

Then on January 13th, the Times of Oman business page had the following headline and article

<b>BMW goes to OTE</b>

MUSCAT — German automaker BMW has a new dealer for Oman, it is reliably learnt. The carmaker has deserted the National Automobiles to join hands with the Oman Trading Establishment (OTE), a Bahwan group.

However, both companies have denied any such move. A source close to the OTE said: “This is just like the one that the market was talking about the OTE taking over Daewoo and so far nothing has taken place. This rumour is also similar to that and it may or may not happen.”

However, informed sources asserted that talks about both cars moving towards the OTE were on and “now it is BMW and Daewoo is the next”.

When asked to confirm about BMW dealership being taken over by the OTE, a National Automobiles official said: “It was not true.” However, other market sources confirmed the change of BMW dealership from the National Automobiles to the OTE. “The OTE has taken over BMW dealership,” they told Times Business yesterday.

The National Automobiles belongs to Al Hashar Group which also has the Japanese Nissan dealership. The market source told Times that the talks about the change of hand were on the cards for quite some time “and finally now it has taken place.

Then on January 14th:

<b>It’s baseless

National Automobiles dismisses rumours over BMW dealership</b>

MUSCAT — The National Automobiles yesterday dismissed the rumours doing the rounds in the automobile market about a change of dealership of BMW brand of cars.

In a statement issued to the Times of Oman over a report carried in yesterday’s edition, the National Automobiles said: “It is baseless”. The National Automobiles’ statement said there had been attempts at spreading lies and defaming Al Hashar Group, “leading to dishonest competition”. The National Automobiles said the report carried by the Times is an “injury to our reputation”, and said “such news should be taken from the Ministry of Commerce and Industry”.

“This is an intended defamation that would affect the financial reputation of our establishment which would shake our position as a leading corporation and affect the sale of BMW cars in the market,” the statement added.

While the Times of Oman would like to clarify that the report was no attempt at defaming Al Hashar Group, the paper regrets any inconvenience the report might have caused to any party.

In a topic that I started in the Local Forum at that time Rohit wrote the following:

<i>The news article (regarding BMW) was baseless.
I cannot understand how TOO published such stuff.
Considering the fact that Auto distribution is one of the high points in the Omani Business scenario, TOO should have been carefull.

However there is some possibility in the Daewoo affair. General Motors has just taken over Daewoo. The current Daewoo distributor also sells Ford, which is GMs great American rival. There is a probability that GM would change the distribution.

Currently there are two GM distributors - Mussa Abdul Rehman(?) who has GMC range and OTE which has the Chevy range. The probability exists that one of them can bag the changed distribution.</i>

And I replied:

<i>Rohit, news never comes out of thin air, and as they say "there's no smoke without a fire". Al Hashar suddenly fired the general manager of National Automotive a few weeks ago. Then came the news that he blocked him from leaving the country and asked the police to investigate him for some descrepancies. Then the rumors started to circulate that Al Hashar was accusing the general manager of conspiring with a competitor to transfer the agency. How much is true, we don't know. Someone told me yesterday that National Automobiles BMW agency comes up for renewal in April.

As for the GM news, it is true that GM is reconsidering all its agents in the GCC. They are allowing all their agency contracts to lapse without renewal and then they will decide on either renewing or consolidating.</i>

In the meantime, in the period since that time, there have been the following rumors:

- Al Hashar accused their ex-GM of conspiring with the Bahwans to transfer the dealership to them.
- Al Hashar accused their ex-GM of having over 1 million dollars in a bank account in the UAE. They also accused him of violating the BMW dealership agreement by re-exporting vehicles to China which is considered to be predatory by BMW.
- Al Hashar took the matter to HM himself to stop the Bahwans from taking the agency from him. HM asked the ROP to investigate the matter and report back. The ROP reported no illegality in the Bahwan's action.
- Al Hashar continues to deny that National Automotive is losing the BMW agency.
- Suhail Bahwan group have informed that Ahmed Suhail Bahwan is now the agent for BMW.
- Al Hashar says he will use the courts to block the transfer of the dealership.

The fact is that BMW wants to Bahwan to be their agent. Bahwan had approached BMW once before over 10 years ago and BMW was going to transfer the agency but Al Hashar managed to block them. Apparently despite the big sales by National Automotive, BMW still believe they could be doing better in this market.

[VANQUISH]

It was said that OTE got it coz National Automobile (NA) violated the franchise agreement by exporting BMWs to China black market!....so BMW is suing them for that!....however, the latest news is that the matter went up to a very high authority and NA got it back!

[Invincible]

Wow, exporting to China black market? any ideas how that worked? did they export in thousands? how easy is it to do such a thing? my god, businessmen in Oman are experts at conducting fraudulent activities!

[muscati]

The ex GM of National Automotive is a BMW veteran. Even now after leaving NA he still works for BMW somewhere else. How can his actions of re-exporting cars to China cause NA to lose their dealership while at the same time BMW continues to put him in a position of responsibility within their organization?

NA had been re-exporting cars to China for years. I first heard about this in 1997 or 1998. They also re-exported to other countries too. Most automobile agents re-export cars from Oman. Bahwan re-exports thousands of Toyotas every year, mainly to Africa.

I think BMW wanted to be in business with the Bahwans, and since the agency was expiring this year they took the chance to switch it. Besides, with the WTO in effect, the timing couldn't have been better. NA had good sales in Oman, but the sales were mostly through incentives such as government pricing. Besides there was too much friction inside the organization with the owner taking hands-on control of the management, often over riding the BMW chosen manager.

[Rohit]

From what I heard NA has not been performing well since last year, the group has problems with Nissan too.



Invinc...

The entire auto market in Oman survives on this 're-export' phenomenon. Ever wondered how the companies managed to finance the huge capital investsment in this tiny market.



Appliances Electronics and some other Auto industries like parts, Tyres etc are also dependent on the re-export market. Omani companies send the material all over the place - Iran, East Africa, North Africa, Central Asia are primary countries.



Almost all companies have this re-export department. It will be a hush-hush affair, hidden from the normal domestic operations. Probably named differently.



Most of them are licking their lips right now, awaiting for Iraq market to boom. The demand for cars and spares are going to be extraordinarily high.



A very large but blatantly illegal market was UAE. This was how it worked.



Omani companies import goods into Muscat (pay 5% customs).

They would then send the material to UAE (get back 4% from Omani Govt.)

Notice that there is no UAE border post on the UAE-Oman highway so there is no tariff on UAE entry.

The goods now bear 1% duty (5%-4%). UAE distributors had a 4% customs duty.

So Omani goods were cheaper and could be dumped in the market.



About 5 years back, a Nissan guy from the Omani distributor was kidnapped, beaten up and left in the desert while attempting to negotiate a deal in UAE.



UAE struck back with a provision requiring local dealers to give a No Objection Certification before registering any car.



However with the new customs union, there is no longer a duty drawback provision. Many local companies will either loose substantial volumes or loose substantial margins.



The current Global trade imbalance also works in favor. Goods are flowing in China/Hongkong. There is not much container traffic into those ports. Since container and marine vessel flows have to be balanced, the shipping rates to China from Gulf are dirt cheap.



Automobile boot leg market exists all over the world. The manufacturers try to restrict and control the channels, primarily in order to fix prices and increase margins. Anytime you do that bootleg markets open up.



Since the authorised dealers keep a hefty margin (to service the enormous capital investment in showrooms and Service Equipments), there is enough room for both bootleg buyers and sellers to operate.



Europe is legislating to pry the market open.



Tomorrow you can start a Mercedes showroom in Oman (the govt. is not concerned about it). You will have to careful of Mercedes Trade Marks copyright, get your pricing right, find a seller, ensure Insurance cover exists for guarentee and off-source all the service facilities.



I do not have the current figures but 1996 figures give you an idea.



Oman exports of Automobiles are 16000 numbers!!!

Primary markets - UAE, Russia and Hong kong (China connection).



Auto spare parts exports by Oman (same year) is RO 53 Million!!!! Compare this to Automobile Parts Imports of RO 85 Million. Omani imported more for exports than for consumption.



National Auto can sue for illegal termination of contract. All distributors sign a contract with the manufacturer every year. In this contract, termination of dealership is specified. You can claim that this was not followed properly.



NA will be suing BMW and not the Bahwans.

[muscati]

I wouldn't be surprised if Nissan wants out of their agency with Al Hashar too. Despite spending millions on a new showroom sales haven't really taken off. Nissan is experiencing a tremendous turnaround globaly and yet in Oman they appear to have a diminishing market share. If BMW was unhappy even though their sales were good, can you imagine what Nissan's view of their situation here is?

[V6_4MOTION]

AL-Bahwan wants 2 start a MONOPOLY WE GOT 2 STOP IT! its ridiculous!!
AL-FUTTAIM WHERE R U !! hahaha

[VANQUISH]

....heard BMW is no longer supplying NA with parts! and its also been said that NA ex-GM is gona head the new business.

[ProToCoL_MaN]

The ex-GM of Al Hashar owns the BMW agency in Nablis at Palastine.

[VANQUISH]

...yeah I heard that a year or two back...

[ProToCoL_MaN]

Vanquish, thats for sure...

[Dabdoob_Al_Helwa]

Yea exactly vanquish...
ive heard this from my dad...!

[muscati]

Now they say that OTE has taken over Nissan from Al Hashar too. I've always thought that it was possible for Al Hashar to lose Nissan but not BMW. But now he's lost both, and <b>to the same person!</b>. Man that's sad.

[ProToCoL_MaN]

Its not sad, its business...

[muscati]

It may be a shrewd way of doing business, but it stinks. The man worked all his life building his business. His two crown jewels were BMW and Nissan, and now both are gone with 5 months of each other, taken away from him by the same company. And it's not like there were negotiations or anything. Apparently Nissan sent a communication out of the blue telling him that they're taking away the agency.

There weren't any negotiations, there wasn't an offer to buy the business from him. OTE could have come to Al Hashar and offered to buy the assets from him, but instead they went to the principals in Japan and Germany and convinced them to shift the agencies.

In a community as small as ours, and especially in view that both Al Hashar and Bahwan are from Sur, what does that tell you about our business people? That business comes before everything? That it doesn't matter how just, chaste, religous, generous you are, when it comes to business it's ok to be ruthless?

[ProToCoL_MaN]

Muscati,
I do agree with you, but there are some hidden facts in the case...neither me nor you know them.

[VANQUISH]

Looking at the other side of the coin...Nissan in Oman wasn't performing well lately...what happened is sad, although as they say Business is Business...

[South_Pacific]

Shrewd but it stink, i will add one
more, ppl are not anymore concern with Ethically practise. The fittness of the fight survive. If Bahwan or whoever it is, today managed to win this fight,tomorrow,who is more stronger, will win over the Bahwan.

Bahwan may show his mascale, but the outsider will easily crush him.Really?

Please, read H_U post,it all is to DO with WTO,or globilisation.

[Invincible]

Big fish eating the small fish.

I agree with Muscati, it is definantely sad.

[South_Pacific]

If few who have monopolised business in this country for a long time, is time for them to go, so other can a play vital role in the progress of the country, then who will these ppl be? It is true, for many years, only a hadnful of ppl, who have been controlling the business, others weren allowed, so this is golden chance.

I know nothing about trade, business,money,or this taking overs.

I have this simple Q i really want to learn, if Hashar or anyother who have been in this business for years, and years, could not stand the Bahwan or anyother,will people like south pacific, who also want to to do a business from scratch,able to chandllenge Mr, X,R P, and the rest?.

To me it look there few who were monoplosing the trade,and among them, they will eat other,and i n the end, the Tarzzan, survive.

The Tarzzan will be the SOLE left palying the game.

How can a junior players compete with allready professational palyers, when allready some seneniros couldn't?

[Gazelle]

It all goes back to how good of a businessman you are. You could start from scratch, but need to have an excellent strategy.. Besides, all businesses start small then grow... Also, becuase of the profits that each of these firms produce, more people like yourself and others will be tempted to enter that industry which will create competition. Only those that can keep their costs prices low will be able to stay in competition. Those that can't will drop out..

Not all businesses succeed, and not all businesses fail either.. It all goes back to how good you are in business and the strategy you have, whether you manage to keep costs prices down, yet still have a profit, good advertising, good management etc.

[VANQUISH]

raiya, u r absolutely right when it comes to books and theories, however reality shocks sometimes if not all the time....

[Invincible]

Fact is OTE are so good with marketing and sales. Watch Nissan and BMW sales improve now that OTE has taken over. Their tactics are mindblowing, but unfortunately I cant share it because it's strictly confidential.

[VANQUISH]

nah...facts say OTE last Ramadan sales were miserable...

[Invincible]

Well you honestly cant compare the performance of OTE to Al-Hashar and that's my point. Every Ramadhan is not always a bright time for sales. Some years are good, some arent.

Would you disagree that their marketing strategies are excellent?

[VANQUISH]

aha their marketing strategies r so excellent no wonder we find many Caddies around!

[Invincible]

Are you telling me that Muscat isnt flooded with Hyundais?



Caddies dont do very well in any part of the world. Even in America, you dont see that many in comparison to other cars. However, if your arguement holds water, then I should question Zubair Automotives, I dont see that many Bentley's around nor do I see Citroens or Chryslers.



But compare Hyundais, Subarus, Toyotas, Mitsubishis, Nissans, etc... because that's what the majority of the population can afford. You will find that OTE are probably second in line.

[VANQUISH]

u were talking about OTE marketing strategies...what u mentioned is only a sub divinsion....ah u got look at the whole picture...the full group performance not just a sub-division! Besides the market is flooded with Kia these days and its with SB not OTE anymore...

[Invincible]

I didnt mention Kias! if you want to talk about other companies such as Zubair, Moosa, and others....are you still telling me that OTE are no good? if they werent as good as you make it sound, then they wouldnt have been able to take over Nissan and BMW. Quite simply really.

[VANQUISH]

...look at the other side...maybe that's what they need to be good! ....I heard the guy who was in charge of OTE automotive division was asked to leave after OTE so so performance last year.....In addition some of their tactics backfired....anyhow OTE mashalllah got a great infrastructure probably only beaten by SB....however now that WTO is shadowing over, many local agencies might be reluctant to invest in infrastructure if any Jim, Nick and Harry could simply bring in a new car from across the boarder...

[Rohit]

BMW for sure is not with OTE but with Suhail Bahwan group. OTE is the company of his son Saad Bahwan. Altho the family is same, the groups are different and even compete in segemnts like air conditioners other appliances.

Nissan is also going to be with the Suhail Bahwan group. Managed by his other son Ahmed Bahwan.

There are rumours that the new company is borrowing staff and facilities (Wadi Kabir buildings for eg.) from OTE.

Vanquish.
I know the head of OTE abt whom you are refering to. In my opinion he is the best General Manager in town. His ability to merge Visionary aspects together with minute details of operational work is incredible.

The guy wanted to retire and devote himself to teaching (stress free - he says but considering today's students?). However the Bahwan group has requested him to stay and have allocated him another project.

The guy is very loyal and beholden to the family because of the help they gave him when his son needed emergency and very expensive medical treatment.

All car companies have done badly in the last two years. Ramadhan promotion has bombed for all. Some guys managed to contain the damage (SB OTE) while Al Hashar suffered.

Muscati
From an insider I learn (unconfirmed and hearsey) that al Hashar did not place a single order for BMW or Nissan during last year.

South Pacific
Many Omani youths feel the same. They feel that all business are going to the BIG guys and thus there will be no oppotunity to for them.
The problem is to service the infrastruce costs with the business levels of the country. Oman is a small market. Volumes are small. However the population is spread out and hence infrastructure has to built at all major centers -- Very costly affair.
Because of this pincer (costly infrastructure and small volumes) the only way to be viable is to have a basket of agencies sharing infrastructure.

Plus the big business groups have divisions in their company that actively scout for new business. It is their job. Small companies have a tough day to day management responsibilities and do not have time for scouting around. And thus Big groups are more quick to seize opportunity.

The business families are aware of this stress in the society. But is there a way out?.

Look at the banks. They also keep merging and merging.

[muscati]

Like I said before I can totally understand why Nissan would be unhappy with Al Hashar since their sales in Oman are lagging. But Al Hashar has built a huge multi-million rial showroom and workshop in Ghala and finally started expanding the marketing of the cars. They took away the agency (if the market talk is true) only one year after the opening of the new showroom, and while the the workshop expansion is still under progress. We don't know the inside workings of what happened between Al Hashar and Nissan, so we can't really comment. Whatever I wrote was based only on my personal view of hearing about the man losing his two agencies all at once, and both to OTE. On that level, it was sad news.

Now back to BMW and the other comments in this discussion.

<b>Why would BMW be unhappy with Al Hashar?</b> Isn't the country flooded with BMW's? I'd say that given their price BMW were doing exceptionally well in Oman. The new 7 series is selling very well despite the ugly new look. I've met people who admit they don't like the look and yet still bought it because it's the new BMW and it has the prestige they want. Look at the profile of the 318 owners: a vast segment of them are young women at the start of their careers who pay 40% or more of their salaries as car installments. What more could Al Hashar have done to sell more BMWs? The cars practically sell themselves. The Euro has increased tremendously in the past year. The Euro used to be less than a dollar (385 baisas), now it is at almost 450 baisas. That's a big increase. It means that on a entry level BMW the price has probably increased by 1000 rials.

<b>Are BMW owners in Oman dissatisfied with National Automobile?</b> Generally people in Oman love to b!tch about everything. No one is ever really happy with what they're getting. I can't talk for everyone, but as for myself I have had my ups and downs with them. The service level is usually very good and the staff are excellent in their dealings with the car owners. However my main problems were with the car itself. I've never had a major problem but I've had quite a few minor ones such as door locks that fail, or window winding motors that breakdown. The parts are expensive, and so is the service of course, but they have reduced their prices over the past few years. If you compare National Auto BMW with Zawawi Trading Mercedes then you are talking about a vast divide. ZTC prices on Mercedes parts and service are unbelievably high, and customer service quality is ridiculously poor. I've heard the just prior to the news of the agency shift, National Auto had been planning to expand their workshop and had already acquired the land behind their present workshop.

<b>What would OTE do to improve on BMW in Oman?</b> They are building a new showroom in Qurum. If you pass by you'll see a huge project breaking the mountain that used to be called Sogex Hill right opposite Qurum roundaboat (on the other side of the free way from the shopping area). Why not just offer to buy Al Hashar's showroom, I don't know. I heard they've approached quite a few of present National Auto staff to join them. What does that tell you?

Like Invinci said, OTE sells a lot of Hyundais. But do Hyundais sell because OTE is doing a great job, or is it because they are so cheap? Subarus used to sell like hot cakes in the mid 90's. But then the Imprezza's shape was changed and now they don't sell at all. What about Isuzu, do you see any of those around? Or Chevrolets? Or Cadillacs?

OTE is definitely a very well run company. I used to deal with them a lot. But from what I hear from Subaru and Hyundai owners, the service quality isn't that good. Their service centers aren't able to deal with their loads and often routine servicing of cars takes a couple of days. In addition, people complain about the price of their spare parts.

Going from selling 4000 rial cars to 40,000 rial cars won't be easy.

[muscati]

From what Rohit wrote:
<blockquote><font class="small"><hr />
BMW for sure is not with OTE but with Suhail Bahwan group. OTE is the company of his son Saad Bahwan. Altho the family is same, the groups are different and even compete in segemnts like air conditioners other appliances. Nissan is also going to be with the Suhail Bahwan group. Managed by his other son Ahmed Bahwan.

There are rumours that the new company is borrowing staff and facilities (Wadi Kabir buildings for eg.) from OTE.

<hr /></blockquote><font class="post">

True, BMW and Nissan have both gone to Ahmed Suhail Bahwan. The adverts which they placed in the Dubai papers looking for staff for BMW were under the name Al Jenaibi International Motors (or something of that sort). However the ads had Suhail Bahwan Group very prominently at the top. In my posts I wrote OTE because that's what the public refers to it. However there is more to it than just public perception. The new company will be using OTE's showrooms and workshops till their own are ready. Besides, I don't really believe that OTE and Suhail Bahwan group are entirely competitive with each other or run separately. They do share marketing of some products, as well as logistics.

<blockquote><font class="small"><hr />
Muscati
From an insider I learn (unconfirmed and hearsey) that al Hashar did not place a single order for BMW or Nissan during last year.

<hr /></blockquote><font class="post">

Can't be true, or else how did BMW and Nissan get all those new cars which they sold. Before the flood damaged BMW's showroom and their underground storage facility, I had gone and seen the new BMW Z4. How else would they have these new cars if they didn't place orders for them?

In fact what I heard is the exact opposite of what you said. Last year BMW demanded bigger sales in Oman and National Automobiles accepted a higher quota for 2003 and 2004. When talk started to come out earlier this year about Al Hashar losing the BMW agency, they went ahead and placed very large orders to reassure BMW that they sticking with the quota. Anyhow, Al Hashar doesn't lose anything on inventories, since they can be sold back to BMW. But it's with the infrastructure that they get screwed.

[VANQUISH]

Rohit, thanx for clarifying...yup I heard that BMW franchise agreement is in Ahmed.S.B. name....



<blockquote><font class="small"><hr />
muscati :



But Al Hashar has built a huge multi-million rial showroom and workshop in Ghala and finally started expanding the marketing of the cars.

<hr /></blockquote><font class="post">



....What I heard is that Nissan subsidized most of the expenses for the new facilities...



<blockquote><font class="small"><hr />
Look at the profile of the 318 owners: a vast segment of them are young women at the start of their careers who pay 40% or more of their salaries as car installments. What more could Al Hashar have done to sell more BMWs? The cars practically sell themselves.

<hr /></blockquote><font class="post">



...Usually there isn't much of a profit margin for basic model cars...and with the rasing Euro exchange rate that u mentioned they'd probably just breakeven in some cases...



...lets c how things turn out to be...Nissan in Oman definitely needs a shake up, especially its luxury division Infinity which was and is very poorly marketed in Oman!

[muscati]

I was driving to the Bausher and saw that the Bahwan's BMW showroom is ready for business. They're using the showroom that used to be OTE Cadillac except now its called Al Jenaibi International Motors with big BMW and Mini logos. The showroom is full of cars. I could see an M3 right up front.

I also heard that there's a BMW logo now on OTE's workshop in Wadi Kabir.

[VANQUISH]

<blockquote><font class="small"><hr />
I also heard that there's a BMW logo now on OTE's workshop in Wadi Kabir.

<hr /></blockquote><font class="post">

...yeah I've seen both locations...they r not wasting time at all!

[ProToCoL_MaN]

This means that their plans where ready from long time, and they where waiting for the execution phase only.

[Mary]

What will happen to all the staff who used to work in bmw, will they smoothly transfer to the new showroom or what?

[Invincible]

<blockquote><font class="small"><hr />
What will happen to all the staff who used to work in bmw, will they smoothly transfer to the new showroom or what?

<hr /></blockquote><font class="post">

That would be the wisest thing to do. It's cheaper, more efficient and safer.

[muscati]

Apparently Hashar refused to give releases to any of the staff to go to Bahwan. So Bahwan's set up will have all new staff and National Auto's staff might eventually all have to be let go and lose their jobs in Oman.

[Mary]

Is this normal practice? I mean not to give release letters to these employees? I think its already bad enough that they are loosing their jobs but as if that wasn't enough they are also not given proper release documents, that really is unfair.



I know in other countries there are centain syndicates that protect the workers, why is there no such syndicates here?

[Invincible]

<blockquote><font class="small"><hr />
Apparently Hashar refused to give releases to any of the staff to go to Bahwan.

<hr /></blockquote><font class="post">

I will never understand this. I would understand if Toyota didnt give a release to a staff of theirs who wants to move to Honda - e.g. salesman because they might lose business etc but in this kind of situation, what's the benefit? and what are the threats if Hashar does give release letters to their staff?

[muscati]

I guess maybe he's just bitter over the whole thing. The way I see it is this: If BMW thinks I'm not a good enough dealer and they take away the agency from me and give it to Bahwan then why should I go give my staff releases to work for Bahwan? I've lost everything, why should I let them gain more from my losses.

Anyhow this whole thing makes less and less sense with every passing day. If they want the same staff to work for Bahwan then is that saying that the only reason they took away the agency from Hashar is Hashar himself? If they say his agency didn't sell enough cars and then take the same staff and put them under Bahwan why would it be assumed that they'd sell more cars just by changing the owner of the agency? It's obvious then that the people were good but there's something going on against the owner himself.

[Rohit]

I saw the Baushar showroom but it did not look open for business. I think you will have to wait for some more time.

OTE has advertised for Cadillac and Hummer sales positions in UAE papers.

I thought Hummer was with Khimjis. The ad copy says that fluency in Arabic is required. I think a new strategy for Cadillac is being put into place. Having good showrooms and good models is one thing, selling top line cars (mainly to Diwan and High networth Omanis) is another.

Talking about releases.....bahwans are well known for their track record for never giving releases for their employees. I think they would be definately open to getting some BMW employees particularly in sales.

[VANQUISH]

Been hearing couple of rumors:

--OTE reserved 50M Euro for the BMW takeover !!!! I know it sounds exaggerating!!!

--Al-Hashar will still remain a BMW dealer....meaning we gona have two BMW dealers!

--Al-Hashar totally lost BMW and is keeping his premises just to service BMWs

ummm....who is reading local newspaper must have noticed Bahwan teaser ad for BMW.....day after day and the BMW logo is getting clearer!

[Jinan]

I went to give my car for service.. the employee at the BMW told me that they will be going home...

[muscati]

Full text of the huge two page center spread advertisment in today's papers:



"There's a moon for every star.



Heavenly news for the people living in the Sultanate of Oman. BMW takes pleasure to announce the appointment of Al Jenaibi International Automobiles LLC - a member of the Suhail Bahwan Group - as <font color="red"> <b>the new exclusive importer of BMW and Mini vehicles in the Sultanate of Oman.</b><!--color-->[/color] So, <i>BMW has finally moved to its right orbit..</i> To the caring hands of the Suhail Bahwan Group that offers you the commitment of true customer care which has been the hallmark of this group for many decades."



Note: all highlights, italics, etc are mine and not present in the advert.

[Nomad]

I thought that italics section was a bit obnoxious and arrogant when I read it in the papers today...

[muscati]

Man these people work fast!

About an hour after I saw the ad I got a phone call from a number I didn't know and I didn't pick up. A few minutes later I got another call from the same number so I picked it up. The lady on the line called me by my first name and said she's calling from OTE (not Suhail Bahwan Group or Al Jenaibi Intl) and said they wanted to know if I was interested in trading in my BMW or buying a new one. She asked me to confirm all my information which she had already with her. And she asked me to confirm what model and year my BMW was.

[UndeRWriteR]

Law elsalfaa kithaa then I hope they take over aswell on Mercedes from Zawawi Trd hehehe (i'm sure its impossible since its THE ZAWAWI)

I know Zawawi Trd sales are excellent mostly cuz their major Clint is the government but they have the worst service center ever (which i hate big time BAAH) not to forget no marketing no promotions no offers nothing at all.
But yet Mercedes Name sells itself ..

well hope what happened with THE BMs will benefit us the consumers

[Smile]

Muscati,

I'm sure with that marketing strategic of Bahwan, soon everyone in Oman will be owning BMW. <img src="/threads/images/graemlins/grin.gif" alt="" />

[VANQUISH]

<blockquote><font class="small"><hr />
<i>BMW has finally moved to its right orbit..</i>

<hr /></blockquote><font class="post">



The above line is so unprofessional! And way out of line! MHD took over Volvo cars from Oasis and it was a smooth transition on the ads...they didn't trash the previous dealer!





<blockquote><font class="small"><hr />




The lady on the line called me by my first name and said she's calling from OTE (not Suhail Bahwan Group or Al Jenaibi Intl)..

<hr /></blockquote><font class="post">



...seems they got a centralized call center...

[Invincible]

<blockquote><font class="small"><hr />
BMW has finally moved to its right orbit..

<hr /></blockquote><font class="post">

Was that written in the papers?

[Big_Joe]

Oh yes, it did. It also mentioned 'To the caring hands of the Suhail Bahwan Group' Makes it sound like BMW was being taken care of by foster parents <img src="/threads/images/graemlins/wink.gif" alt="" />

[Azx911]

Ya Invinci it was!

anyway i heard the dealrship was taken from Hashar coz they didnt build new showrooms for BMW[i wonder why Mercs arent taken from Zawawee then, if it was this reason]

[Ghetto_Thugin]

actually heres the truth.
when sum of the top BMW representitives came to oman and went to hasharz house. they spoke to him bout building new showroom and making more adverts. luckily unuf he kicked them out of his house/compound. and that was it for hashaar!

[muscati]

Location is excellent. It is spacious and has a big yard in the back. From what I heard Hashar had bought an extension to the land and was going to expand the size of the workshop too. I also heard that he was willing to build a separate smaller showroom in Wattaya for selling the Mini and smaller BMW's like the 3 series compact and the upcoming 1 and 2 series where the prices can be competitive with Japanese cars.

There must be more to it than just a showroom.

[VANQUISH]

Another local dealer who carries a European brand already approached National Automobiles to take over their entire showroom and workshop!!! Though they've been told that National Automobiles still got 75cars in stock to get rid of!

[VANQUISH]

Oman Mobile Telecommunications Co migth take the ex-bmw showroom..

[omus]

Nissan is long gone, then came BMW which to went into an orbit, NOW NBO bank is moved too Suhail Bahwan Group whats Next ??? Think tank of Bahwan group is busy working at snaching other business houses which is making money Who else is doing well in Oman... anyone could be target be CAREFUL the big sharks will have you for breakfast....

[VANQUISH]

Whats obstructing Al-Jinabi from inaugurating their new showroom in Qurum !? Heard they might be on the edge of loosing their BMW franchise coz of alot of misunderstanding between the two parties !

[muscati]

I'm surprised our friend from the Kerala Monitor has been silent on this front since he's reported on that site a few weeks ago that BMW might take away the agency from the Suhail Bahwan group.

[VANQUISH]

Actually the news was circulating since a month back. It's also said that the franchise agreement was valid for a year only !!!

[VANQUISH]

The new showroom inauguration is said to take place this Wed.

[copdot]

from our times of Oman:http://timesofoman.com/newsdetails.asp?newsid=9552pn=business

MUSCAT — BMW Group Middle East and Oman’s Al Jenaibi International Automobiles, a division of the Suhail Bahwan Group and the exclusive importer of BMW Group motor cars and motorcycles in the Sultanate, have inaugurated a $20 million state-of-the-art BMW showroom and after-sales centre.

Also from the same report:

We have chosen Al Jenaibi International Automobiles to represent the BMW and MINI brands in Oman because we believe it will deliver the world class standards of service, BMW Group is renowned for, to our existing and future customers.”

“We are confident Al Jenaibi International Automobiles’ customer first philosophy will not only enhance the ownership and after sales experience for Oman’s many BMW and MINI drivers, but also ensure that sales of the company’s brands continue to grow strongly,” said Seemann.

[omus]

BMW distributorship in oman is again going to change ownership is this true ??

Is this a rumor or does anyone have anymore information on this, Al Jenaibi 20million $ showroom will cease to sell BMW

Al Jenaibi has lost the BMW dealership

[omus]

BMW is not happy with Al Jenaibi's performance and they are least bothered about big showrooms. BMW wants its cars sold in the market and promises made by Bahwans not meeting the BMW targets....

[Neo]

Get out of here, I really find it diffuclt especially after the huge showroom being built. Bahwan is smarter than that and I am sure contract been sign to hold it in place

[omus]

(nee OOO !!) seem to talk like the Bahwans bossy as ever, i want to know if this information is true why are u getting so hyper, $ 20 million is down the drain fo bahwans

[Neo]

Ok than, who is better than Bahwan to take over BMW, are you sure the rumour is not the other away around LOL

[omus]

Its a Saudi & UAE national with a local Omani partner, now how far this is true is what I need to know and I happen to hear this rumor from 2 different individuals yesterday. People from non auto industry that makes me wonder

Now we need to wait and watch how long will Bahwans shining star(BMW) will stay in its ORBIT

[VANQUISH]

<blockquote><font class="small"><hr />
Get out of here, I really find it diffuclt especially after the huge showroom being built. Bahwan is smarter than that and I am sure contract been sign to hold it in place

<hr /></blockquote><font class="post">



Saud Bahwan was planning to take over BMW in the 80s. He built a considerable large showroom to serve the purpose. It’s the current Ford showroom, coz he couldn’t get the BMW agency back then.



<blockquote><font class="small"><hr />
Its a Saudi UAE national with a local Omani partner, now how far this is true is what I need to know and I happen to hear this rumor from 2 different individuals yesterday.

<hr /></blockquote><font class="post">



Heard the same rumor.