Falling Oil Price Prices Ding Dubai, Chevrolet

falling oil price prices ding dubai chevrolet

Dubai gas prices might reach parity with Oklahoma City prices in the near future, as the Emirates of Dubai and Abu Dhabi contemplate raising their standard prices from 6.2dhs per Imperial Gallon (or $1.38 per US Gallon). The rising gas prices only hint at the start of problems from plummeting oil prices in the UAE as ADNOC (Abu Dhabi National Oil Company) and ENOC (Emirates National Oil Company) have started to prohibit cars bearing plates from other Emirates from using their filling stations, as they are the cheapest areas in the UAE. Residents of Sharjah have created the greatest outcry thus far as they complain they are all citizens of the UAE, not one particular emirate, and should have equal filling opportunities no matter where they are. Other victims of the oil crash: the massive building sprees Dubai and Abu Dhabi went on trying to create a tourist destination paradise from a gravel parking lot covered in sand dunes.

Nakheel Properties, the people who brought you the billowing sail Burj Al Arab hotel, the Palm Islands, and the World Islands has canceled 40-60 percent of their building projects (depending on which news organization you listen to… I trust Al Jazeera of all things). Blame declining income from oil and reduced trade coming through the Jebel Ali Free-Trade Zone in Dubai.

Chevrolet has also fallen victim to reduced spending in the UAE; their sales have also started to plummet as compared to Toyota. The newly introduced Lumina SS, Epica sedan (rebadged Suzuki Forenza) and GMC Acadia have seen a significant sales stall as most UAE residents see them as “cheaper” alternatives to the ubiquitous Toyota and Nissans preferred by the general working populace.

Maybe GM should pull a Michael Jackson and ask a rich oil sultan for a handout? In the meantime, the Emir of Abu Dhabi has stressed to the citizens of the UAE to not overreact, and trust the government to make the right decision in the global economic crises (i.e. we are going to make sure the money keeps pouring from our oil operations).

They better hope so. Tsarat al-bieru al-muattala katzran machidan (the water wears aways the stone.

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2 of 6 comments
  • Mike Solowiow Mike Solowiow on Dec 05, 2008

    Cadillac and Hummer have seen increases yes, as well as the Chevrolet Caprice and Suburbans, however, the Lumina and the others... not so much. Radio 1 this morning reporting slow sales for those three I mentioned, and problems for Chevrolet with the problems stateside, as most of the Chevrolets, and other GM products sold in the UAE are North American market vehicles (minus the Australian imports).

  • Areitu Areitu on Dec 05, 2008

    I thought Dubai and Abu Dhabi were were both attempting to position themselves as the Singapore/Hong Kong of the middle east and diversified themselves against the risk of falling oil prices. Guess not! Russia, Iran and Venezuela are hurting too. Irony?

  • SCE to AUX I like it, but I don't know how people actually use dune buggies. Do you tow them to the dunes, then drive around? Or do you live close enough that the law winks as you scoot 10 miles on public roads to the beach?As for fast charging - I doubt that's necessary. I can't imagine bouncing around for hours on end, and then wanting a refill to keep doing that for a few more hours in the same day. Do people really run these all day?A Level 2 charger could probably refill the 40 kWh version in 6 hours if it was 80% empty.
  • Lou_BC This is a good application of EV tec. A play toy where range isn't an issue.
  • Roadscholar I just bought a Veloster N Auto for $500 under MSRP
  • JMII In 5 years these cars will be worth about the same as normal (non-Proto Spec) version of the car. My limited edition C7 (#380 out of 500) is worth maybe about $2k more then a similar spec C7 and this was a vehicle with a $75k price tag when new. The problem with these launch editions is they rarely contain anything more then different paint, interior trim, some bundled options and a few badges. Thus there are that "special" other then being new and limited, two things that will fade into history very quickly. As they saying goes a fool and his money are soon parted.
  • J. Stephen Tevis Hello Everyone! My name is Stephen Tevis and I am the General Manager at the dealership in question! The information that was sent via text was incorrect, the info got trickled down to our internet manager thru a couple of different people thus the info being wrong. Nevertheless, we are NOT marking 'our' Z up $50K!! It was a discussion that I personally had with a few other Nissan dealers and the $50K number came up in that conversation. We have never marked a car up that much and just wouldn't. We have been in business for almost 50 years and gouging our customers is not how we achieved longevity. The Z is an incredible car and we are looking for to seeing it as I'm sure you all are, there are only 11 coming to our region which includes over 230 dealers. We are proud of the heritage of the Z but not so proud that we will bend our morals to sell it. I hope that this clears up any confusion, I am always available to give accurate and timely information, james.tevis@jeffwyler.com. Thank you for your time.Respectfully,J. Stephen TevisGeneral Manager