After officially launching its Borgward BX7 and BX5 in the Middle East, Germany carmaker Borgward launched its showroom in Dubai. The showroom was launched in collaboration with its exclusive distributor in the UAE, Union Motors. Borgward also opened the Middle East Parts Center, a central warehouse, at the Jebel Ali Free Zone (JAFZA), in order to solidify its presence in the region and increase its market share, to cater to the growing demand for its spare parts and services in the GCC market. The warehouse will cover over 16,000 square meters and will help to fulfill regional demand and cut down the time needed for delivery of parts.
Borgward’s launch of two of its most popular models in the UAE aligns well with its plans for strategic expansion in key individual markets which offer potential for business growth. The establishment of the Middle East Parts Center in JAFZA offers the twin benefits of superior geographical position and easy transportation. The warehouse has partnered with MaxX Logistics, a subsidiary of Almajdouie Group and Sinotrans Co., LTD., which is based in JAFZA for project logistics, road transport, storage and transportation, door to door delivery, and other value-added services. Another notable feature of the warehouse is that it has integrated a WMS inventory management system for day-to-day warehousing functions and for scanning the code of the goods through the handheld terminal for effective system query inventory, electronic ordering and outbound delivery.
This makes operations, sales and service a lot smoother and more competitive from the perspective of local dealers’ operation. The quick availability of spare parts from the warehouse will shorten the supply cycle of spare parts and thus enhance the level of customer satisfaction.
Borgward’s new Middle East Parts Center in Dubai has been strategically planned to effectively cater to the regional demand. It is expected that over the next few years, the distribution area of the Center will expand to cover Middle East & Africa countries and the range of products that are available will grow to include 30,000 spare parts spread over 25,000 square meters. Shipping time for parts will come down to 2-5 days from placing the order to delivery of the product.
Tom Anliker, Senior Vice President of Borgward group AG, said that Borgward had made its entry to the GCC on the basis of the strong demand in the GCC prompted by the high customer demand for compact and mid-size SUVs in the region. He said the establishment of the central warehouse in Dubai’s JAFZA reflected Borgward’s commitment to delivering outstanding service to its customers and highlights its efforts to become a trusted service partner. The establishment of the warehouse complements Borgward’s entry into the GCC market and will support the company’s expansion plans in the GCC.
Borgward has rolled out several promotional offers in connection with the opening of the showroom, including lifetime unlimited KM warranty and two years 50 per cent buyback promise for the first batch of customers. The first set of buyers will also receive the latest iPhones free with their vehicles.
Borgward officially entered the GCC retail car market with the launch of the Middle East variants of the premier BX5 and BX7 SUV models in November 2017. With strong backing from MaxX in the GCC region for warehousing and logistics capabilities, Borgward customers are assured of timely delivery of spare parts, and this will significantly contribute to the German automaker’s overall sales and market presence in the region.
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