GB Auto Corporate Growth and Expansion Strategy
AUTO
PC
Iraq
GK Auto continues to achieve sales and growth levels in-line with management
expectations
Understanding the Iraqi Joint Venture...
GK Auto's performance year-to-date...
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.
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GK Auto is a 50-50 joint venture set up
between GB Auto (Egypt) and Al Kasid* (Iraq)
GB Auto is responsible for day-to-day
management, Al-Kasid provides resources to
support the operation
GK Auto, set up in the Jordanian Free Zone
Area, wholly owns an Iraqi subsidiary which
distributes Hyundai vehicles throughout Iraq
Jordan
Iraq
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•
Average monthly sales increased from
2,250 units per month to current levels of
2,500 units per month
Gross margins currently in the range of 6%,
and will be maintained at 6-7% through
year end, with net margins at 4-5%
The gradual phase out of parallel imports,
should see gross margins increase to the 7-
8% range in the near-term
• Strategy going forward is to expand Iraqi
footprint through network of distribution
and after-sales service network
• To minimize capital expenditure
requirements, this will be accomplished
through cost-effective rental of properties
*Al Kasid Group hold exclusive rights to distribute Hyundai Motor Company products in Iraq
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