GM eyes growth in Mideast

By Raissa Kasolowsky

DUBAI (Reuters) - General Motors Corp's Middle East sales fell 19 percent in the first quarter as customers struggled to secure car loans due to tighter lending restrictions at banks, GM's regional president said on Sunday,

Yet, while General Motors could face bankruptcy in the United States, its regional operation plans to introduce new car brands this year to help boost market share from about 13 percent now, said Mike Devereux, president of GM Middle East Operations.

"There are a lot of people who walk into showrooms who aren't able to buy because they can't get financing," Devereux told Reuters in an interview.

Overall auto sales in the region fell 21 percent in the first three months of the year compared with the year-earlier period, General Motors said, citing data compiled by a group of major car manufacturers that operate in the region.

"The availability of banks to lend our distributors money and the consumer money continues to be an area of concern for us. However, and we've been saying this for four or five weeks now, we're seeing signs of that easing," Devereux said.

The U.S. automaker has been working with banks in the Middle East to help consumers secure access to car loans, by for instance assisting with down payments of up to 15,000 dirhams ($4,084), he said.

"We will be profitable this year too, but much less so than last year," Devereux said. GM sold 144,485 units in the region last year.

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