46
COVERstory |
42
Timeless classics
52
58
cover story
2015
vw cross gte
brandwatch
International news
68
news spotlight
First drives
72
First ride
preview
MOTORSPORTS
Chicane
editor-in-chief
Mohammad Al Taie
hatim@alroya.net
EDITOR & GM
Raj Warrior
raj@alroya.net
executive EDITOR
Chandan B Mallik chandan@alroya.net
contributing EDITOR
Anne Kurian
annekurian@alroya.net
So then what will it take to get the inbound tourism industry past the next threshold? And
in the process, will we have to trade-off pristine beauty for tourism dollars?
Many questions regarding Omans non-oil economy have been thrown up in the wake of
the sudden dip in oil prices. After all, the economy needs to have certain drivers other
than oil if so much variance can be brought about by a price change. So what will the
next driver be? Tourism has potential, but frankly it will have to scale up by multiples to
become important. Manufacturing is caught in a vice of external making. How do you get
manufactured products to be viable, when traditional manufacturing economies are able
to generate the volume needed to keep prices low, while our volumes will always have a
higher cost associated?
The services sector, unfortunately, is all focussed on internal markets and will therefore be
limited to any growth that the market has. So what will the new direction be for the future?
HEAD OF Design
Antony Karlo
photography
Elvis John Ferrao
marketing
Sayantani Ghosh sayantani@alroya.net
circulation
books@alroya.net
FINANCE & ADMIN
Sumy Mol
A couple of months ago, our team attended an Infiniti drive event based around Jabal
Akhdar and the sands around Al Kamil. While providing its share of interest to us, the
sheer number of positive responses from fly in media is witness to the Sultanates appeal
as a tourist destination. Whether it was the scenic Alila resort on the summit or the Desert
resort in the sands, the infrastructure is slowly but surely catching up with the demand.
There are other drives coming up shortly, from other manufacturers and they all intend to
use Omans varied terrain, its scenic vistas and its natural hospitality as factors.
sumy@alroya.net
Website & IT
Mohammed F Draz mohammed.draz@alroya.net
This month, we declare the winners of our Car of the Year program for 2014. Some obvious
winners are there, with one or two models that sneaked into the race and won our hearts.
As always, our Car of the Year program remains unique in the region because it is the only
one that has no money attached to it, only features cars and SUVs that we have driven in
that year and are available in the local market. We are now into our fifth year, longer than
most car magazines last in the region.
Speaking of which, we have to sadly note the closing of two more franchise auto titles in
the region. Proof enough that the franchise model is flawed, as well as serving to note the
pressures of eyeballs shifting from print to new age media.
Printer
Ruwi Modern Printers LLC, Muscat
Tel: +968 2479 4167, 2479 8157
Fax: +968 2470 0545
2014
All editorial content of Automan in the magazine
and its website is copyrighted and may not
be reproduced in any form without the written
consent of the management of AL ROYA PRESS &
PUBLISHING
Automan accepts unsolicited exclusive editorial
material, but reserves the right to publish any such
material. Once published, the copyright for any
such material will vest with AL ROYA PRESS &
PUBLISHING
Successful editions of
Pajero Adventure held in
the Sultanate
FEB 2015
FEB 2015
news
FEB 2015
FEB 2015
news
10
FEB 2015
Refreshed
Volkswagen Touareg
on sale now
FEB 2015
14
FEB 2015
SMALL CAR
MAZDA 3
Mitsubishi Attrage
In the past, the Mirage has had a very complicated
marketing history. Now, the sedan version of the Mirage
hatchback is called the Attrage. Although it boasts unique
design from the back doors rearwards, and has revised
frontal styling. The car is manufactured at Mitsubishis
Laem Chabang plant in Thailand and is very basic in nature.
Verdict
MG6
FEB 2015
15
Verdict
Mid Size
car
Ford Fusion
Honda City
16
FEB 2015
Verdict
Large car
Hyundai Sonata
Hyundai Genesis
Honda Accord
FEB 2015
17
Infiniti Q50
Verdict
18
FEB 2015
Audi A3
Premium
Car
Mercedes-Benz
C-Class
A nice try by Audi to help the brand break into the entrylevel pricing segment. It comes with brilliant packaging but
is nowhere close to the winner as above. It is a winner in
the sub segment it represents elsewhere.
Maserati Ghibli
Verdict
Luxury Car
FEB 2015
19
Verdict
Hot hatch
Mercedes-Benz
A45 AMG
Kia Soul
20
FEB 2015
MINI Cooper
Verdict
Sports Car
Audi TT/TTS
Ferrari California T
Jaguar F-Type
21
Verdict
With the 458 Speciale, Ferrari, very much like Bentley went one step ahead
and created a more aggressive variant with dual driving nature features suited
for day-to-day road and or track day performance. However, the Ferrari 458
Italia is approaching its fifth year on the market, but it still looks every inch
the modern, masterful supercar. The driving experience of the Speciale also
places it among the very best supercars ever built. In the interim period,
however, Ferrari has offered little in the way of updates or changes to the
Italias feature and equipment set.
22
FEB 2015
Performance
Car
Lamborghini
Huracan
Small SUV
Lincoln MKC
SsangYong Korando
Verdict
Emgrand X7
FEB 2015
23
Verdict
24
FEB 2015
Mid Size
SUV
Kia Sorento
Jeep Cherokee
GMC Yukon
Verdict
GMs SUV only brand GMC has also been firing on all cylinders. GMCs previous
announcement that the all-new 2015 Yukon, Yukon XL and flagship Yukon
Denali models will deliver greater capability and refinement, with more power,
new fold-flat rear seats and a quieter interior have been met. And thanks to a
new family of advanced EcoTec3 engines, the line-up is designed to deliver the
segments best V8 fuel economy. We expect the Yukon family to overtake the
aging opposition in the coming months in the region.
Chevrolet Tahoe
Large SUV
Nissan Patrol
Chevrolet Tahoe
FEB 2015
25
Premium
SUV
Cadillac Escalade
Verdict
Porsche Macan
26
FEB 2015
Verdict
Performance
SUV
Porsche Cayenne
FEB 2015
27
Cadillac ATS
28
FEB 2015
Verdict
Lincoln MKC
Best debut
Porsche Macan
Bentleys new
SUV formally
named
Bentley Motors has officially announced
the name of its upcoming utility model
at the North American International
Auto Show in Detroit. Set to debut later
this year, Bentleys SUV will wear the
name Bentayga. The SUVs name was
inspired by the companys namesake
as well as the natural world; Taiga, the
worlds largest transcontinental snow
forest, resides to the North of Bentleys
HQ while the Roque Bentayga rock
formation is to the south in the Canary
Islands.
Bentayga is a name that reflects
what we know our SUV will do better
than any other car in the world combine the best automotive luxury
with outstanding performance to
McLaren to
celebrate the 20th
anniversary of the
companys F1 GTR
victory
McLaren will build limited to 50 unit
production a special-edition of the
650S. This car will celebrate the 20th
anniversary of the companys F1 GTR
victory at the 24 Hour of Le Mans. Five
McLaren F1 GTRs finished the 1995 race,
notably accounting for four of the top
five positions. The company previously
honoured the achievement with a series
of five cars badged the McLaren F1 LM.
More Maybach
branded cars from
Mercedes?
Nissan Altima to go
under the scalpel
FEB 2015
New engineering
facility for Aston Martin
Aston Martin is significantly expanding
its vehicle engineering facilities with the
opening of a cutting edge prototype and
vehicle development base at the new
MIRA Technology Park in Nuneaton,
Warwickshire, UK. Aston Martins new
facility will add vital engineering capacity
as the luxury British sports car brand
steps up its programme of new model
development. The 15,800 sq ft building
accommodates a key part of the brands
prototype and vehicle development
operations and represents a significant
investment in support of current and
future model programmes. Ian Minards,
Product Development Director at Aston
Martin, said: The cutting edge facilities
at MIRA, together with its reputation for
quality and excellent security, make it an
ideal place for us to carry out some of
our prototype development work.
Production
Ssangyong Tivoli
ready
AMG to take on
Porsche directly?
brandwatch
Jaguar announces
F-PACE
news
Corvette to
influence new
Malibu styling
31
Executive changes
to identifying whether its product has twowheel or all-wheel drive and the badges
appeared in the Alfa Romeo 159 sedan,
besides the Maserati Quattroporte S and
Ghibli S Q4 sedans. Now, it is speculated,
that theres personal ego involved more
than commercial interests. VW Group CEO
Ferdinand Pich and Fiats Marchionne
have been caught on the wrong foot
several times since 2012 and either is not
willing to compromise. This means till 2018
[Marchionnes planned exit] VW Group
will have to wait and watch. Audi might
have a better chance with Marchionnes
successor.
Automans take
The appointment makes Biermann the second high-ranking German executive the
Korean automaker brought on board, after chief designer Peter Schreyer. Hyundai
has recently opened a test centre at the Nrburgring with an eye towards launching
a new N performance line.
FEB 2015
Automans take
Bespoke Collections including Waterspeed, Pinnacle Travel and Metropolitan, and unique creations such as the Maharaja Phantom
Drophead Coup contributed to Rolls Royce sustaining its leadership of the industry in the area of individualisation.
Automans take
Volvo is also behind rivals BMW and Mercedes in establishing production in the United States, which insulates the German brands
from currency fluctuations.
Automans take
The recently introduced Range Rover Sport SVR has already paved the way for the nomenclature change and all models of this kind
will come with extra power, stiffer body structure along with other typical upgrades like sport-tuned chassis and suspension and
bigger braking systems.
FEB 2015
33
Ford
Volkswagen
34
FEB 2015
brandwatch
Volkswagen
Hyundai
Tata
Tata Elxsi, a design and technology
services subsidiary of Indias Tata Group
has made inroads into the world of
autonomous driving technology. The
company displayed an assortment
of hardware, firmware and software
solutions for self-parking cars,
infotainment displays that incorporate
wearable devices, app suites that tie
consumer and car together and secured
gateway integration were just a few of the
technologies displayed by the company.
BMW
BMW wowed visitors to this years
Consumer Electronics Show in Las Vegas
with a host of new technology including
its laser-guided i3 which will park itself
while its occupants go shopping. In
addition, BMW showcased its over-the-air
map updates for the latest generation of
BMWs Professional navigation system.
New map data can transmitted to the
car for free via the internet through a
smartphone app. BMW also demonstrate
its new wireless charging tech which is still
in the research phase.
Toyota
Audi
Audi showcased most of its future
technologies in the Prologue concept.
The not only previews the brands
future styling trend but also advances
in technology such as its 505kW/950Nm
hybrid powertrain, three-part touchscreen
display and light-show interior. Audi
is also working on driverless cars, and
demonstrated its prowess with a rigged
A7 sedan that covered 901km [from
Stanford, in California, to Las Vegas,
Nevada] without a driver. Visitors also got
a chance to see the Q7 SUVs new cockpit
architecture that is likely to roll out in
future Audi models.
35
news
Mercedes-Benz
Irrespective of the global oil price slump, car makers are focusing
more on efficiency solutions while not totally abandoning all-out
performance machines. At least, thats the message from this years
opening global motor show
Author: Chandan B Mallik
Acura
The Italian premium sports brand dropped the top from the 4C
Spider. The 4C Spider is nearly identical to the 4C Spider Concept
that was shown at the Geneva Motor Show in 2014. The Spider
comes equipped with an integrated roll bar and a removable
roof panel crafted out of carbon fibre to help keep weight down.
Power for the 4C Spider comes from a turbocharged and directinjected 1.7-litre four-cylinder engine borrowed from the 4C
coupe. It sends 237 horsepower and 258 lb-ft. of torque to the
rear wheels via a six-speed dual-clutch transmission, enough to
propel the 4C Spider from zero to 60 mph in roughly 4.1 seconds
and on to an electronically limited top speed of 160 mph. An
Akrapovic exhaust system and Pirelli P Zero tires are available at
an extra cost and so will be Track package.
36
FEB 2015
Alfa Romeo
Spotlight
news
Audis core message for the audiences at Detroit was the end of
the first-generation Q7 SUV. The second generation version of the
brands first crossover is a far lighter than the outgoing model,
thanks to the use of special steels and aluminium. The Groups
MLB platform will allow the full size Audis to accommodate
a range of engines, including more potent versions of the US
markets 3.0-litre, supercharged V6 and 3.0-litre turbo diesels.
Audi
Following an online reveal about a month ago, BMW introduced
the revised 6-Series family in Detroit. BMW also had on display its
famous 3.0 CSL racing car which was manufactured between 1968
and 1975 by Karmann. The brightly coloured car featured a wide
body kit, oversized rear wing and a distinctive M badging.
BMW
Bentley
Buick
FEB 2015
37
Cadillac
Automans take
Chevrolet
Infiniti
38
FEB 2015
Arguably, these figures make the CTS-V the most powerful regular-production car in the
automakers 112-year history.
Fords presence at Detroit this year was by far one of the most
impressive in years. Ford was also in the news for its worst kept
secret -- the launch an all-new GT supercar at the end of next year.
The new GT will be a mid-engined sports coup , designed as a
homage to the original GT40. The GT40 won the Le Mans 24-hour
race four times and the new GT will also be used as a technology
exercise for Ford, with an all carbon-fibre chassis and a 3.5-litre,
twin turbocharged Ecoboost V6 engine in place of the V8.
Meanwhile, on the truck front, Ford introduced its new F-150
Raptor.The new Raptor is lighter by 227kg as it uses aluminium
in its construction extensively. Along with the weight-loss, the
Raptor also hit the gym. Ford has replaced the current trucks
414hp 6.2-litre V8 engine with a next-generation edition of Fords
popular turbocharged 3.5-litre V6 EcoBoost.
Ford
Calling 2015 the Year of Honda, the Japanese brand tried its
best to impress the crowds with an array of innovative products
and technologies. With the FCV Concept, Honda demonstrated
the evolution of its next-generation fuel cell car which is slated
for introduction in the US in 2016. Honda also made several
announcements related to future products that include the
introduction of the HR-V crossover SUV, totally redesigned Pilot
SUV, a new Ridgeline pick-up truck for 2016, all-new battery
electric vehicle and an all-new plug-in hybrid vehicle by 2018
and further application of Hondas two- and three-motor hybrid
systems. And before the end of the year, Honda will begin to
introduce our new 4-cylinder VTEC Turbo engines an extension
of its Earth Dreams Technology powertrain line-up.
Automans
take
Honda
Indeed a busy year for Honda and also its reconnects with F1 as a power unit supplier a 1.6-litre
turbocharged engine and hybrid-type kinetic and thermal energy recovery systems. This will happen
through Hondas partnership with McLaren and drivers Fernando Alonso and Jenson Button,
beginning with the opening race of the series in Melbourne, Australia on March 15, 2015.
Hyundai
Hyundai launched its first
plug-in hybrid vehicle for
the US markets in the
form of a Sonata variant.
This Plug-in Hybrid Electric
Vehicle (PHEV) is expected
to travel up to 32.4km on
electric power alone and can
recharged in two and a half
hours. The car will be built at
FEB 2015
39
Jaguar
Land Rover introduced a new diesel engine option for its Range
Rover and Range Rover Sport luxury SUVs for the 2016 model
year. Both diesel models were on display for the first time at
the Detroit auto show. The 2016 Range Rover HSE Td6 and
Range Rover Sport HSE Td6 will use a version of Land Rovers
254hp 3.0-litre turbocharged diesel V6 mated to an eight-speed
automatic transmission. The V6 diesel promises significantly more
low-end grunt than Land Rovers standard supercharged petrol
V6.
Land Rover
Lexus
Lincoln
Heard in Detroit
Fiat Chrysler Automobiles CEO Sergio Marchionne officially announced an all-new Alfa Romeo sedan to be
launched this year. Global head of Alfa Romeo, Harald Wester, said the cars name could be Giulia (and
Giulietta) and will be designed to represent milestones in Alfas history.
Automans
take
40
FEB 2015
We do know that prototypes of the new sedan (codenamed Tipo 952) are being tested in Europe. It
will be based on the Giogio platform and will be slotted in-between a BMW 3-Series and 5-Series for size.
In Europe it will be the successor to 159.
Mercedes-Benz
MINI has fully unveiled the production version of the 2016 John
Cooper Works Hardtop which is basically identical to the concept
that was presented at last years edition of the Detroit show.
It stands out from a stock third-gen MINI Hardtop with a more
muscular look accented by a deep front bumper with large air
ducts, black trim around the radiator grille, more pronounced
mudguard flares and a bigger roof-mounted spoiler and the
customary sprinkling of JCW emblems wrap up the overall look.
Nissan
RAM
MINI
Porsche
FEB 2015
41
Volvo
Automans
take
Volkswagen
Toyota
Playing on the lines of the Big Three American brands big truck presentations, Toyota offered a refreshed Tacoma. The Tacoma
now benefits from some technology applications from the Prius [chiefly combustion wizardry to boost fuel efficiency].
42
FEB 2015
Automan captured
the spirit of an annual
vintage car and
motorcycle rally event in
Kolkata, India
Author and photography: Chandan B Mallik
44
FEB 2015
FEB 2015
45
news
Exclusive
46
FEB 2015
2015 BMW X6
48
FEB 2015
Niche
positioning
For 2015, the fairly new Sports Activity Coupe segment gets busy with new models and new players.
Meanwhile, BMW introduces its completely redesigned second-generation X6 SAV with more utilitarian
tweaks. Automan checks out the car in the Sultanate
FEB 2015
49
FEB 2015
51
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54
FEB 2015
ral
u
lt
u
C
on
i
t
u
revol
or
in its status as a purvey
ga
re
to
ts
mp
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mid-luxury
Lincoln has been makin
refreshed for 2015 MKS
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th
ith
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American luxury brand
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in the US and overse
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of luxury automobiles
ct more buyers to the
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Ferrao
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| Photography: Elvis John
sedan, the carmaker
Author: Chandan B Mallik
FEB 2015
55
FEB 2015
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57
Lincoln is beginning
to keep up with
the competition in
the luxury sedan
segment with
more modern
styling, better
handing and the
latest technology
packaging
creates a sensation of lavish roominess.
Meanwhile, the digital instrument gauges
are reminiscent from the Taurus and
features a centrally placed speedometer
flanked by two full-colour reconfigurable
LCD screens. Content for the 4.2in LCDs
is controlled by five-way buttons on the
steering wheel. An 8.0in multi-function
LCD touch screen dominates the central
console and provides the visual and
control interface for the entertainment
system, phone, navigation and climate
control. Since most of the functions are
touch fed, it may take a little while to get
accustomed to. The test car offered came
with multi-contour seats incorporating
seven computer-controlled air bladders
which offered maximum lumber
58
FEB 2015
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59
e
u
Torq
the Town
of
f engines with
o
t
s
a
o
b
n
a
c
s
le
c
y
While many motorc rs, it takes the Triumph Rocket III
ca
outputs matching
sheer volume.
to claim victory in
rrao
60
FEB 2015
hn Fe
Photographs: Elvis Jo
FEB 2015
61
FEB 2015
rocks to the right despite all the counterbalancing. You can feel the torque trying
to get away. The only way this could
be handled well is in the chosen shaft
drive arrangement, with a low travel stiff
suspension at the rear and alloy housing
for the gear and bevel arrangement of the
transfer.
Gear shifting on the other hand belies
the bulk of the bike. Shifting into first is
almost as smooth as on the Bonneville and
so is second gear. Its only as you get into
third that you get a bit of the Harley clunk
come in, only to disappear in the higher
two gears. Keeping the foot pegs at mid
point makes the shift both down and up as
smooth.
This smoothness is as much a function
of the Lamborghini designed 5-speed
gearbox as it is of the rock solid
engineering that underpins the Rocket III.
Take off is all about the torque on the bike
all 224Nm of it. The engine is typically a
low revving unit, happiest in the 3 to 4,000
rpm range, another characteristic that
compares with cars. Thats also the band
when the torque is on full flow. If you
are in a hurry you can make the tail wag,
especially as you turn and change road
incline at the same time. You wouldnt
expect this heavy a bike to respond so
63
64
FEB 2015
ENGINE
TYPE Liquidcooled, DOHC, inline
3cylinder
CAPACITY 2294cc
BORE 101.6mm
STROKE 94.3mm
SYSTEM Multipoint sequential
electronic fuel injection with twin
butterflies and progressive linkage on
primary butterflies
EXHAUST Stainless steel 3 into 1 into
2, large volume catalysts in front of
chromeplated silencers FINAL DRIVE
Shaft
CLUTCH Wet, multiplate
GEARBOX 5-speed
OIL CAPACITY 5.9L
PERFORMANCE
MAX POWER EC 148BHP @ 5750
CHASSIS
FRAME Tubular steel, twin spine
SWINGARM Twinsided, steel (houses
drive shaft)
FRONT WHEELS Cast aluminium alloy
5 spoke, 17 x 3.5in
REAR WHEELS Cast aluminium alloy
5 spoke, 16 x 7.5in
FRONT TYRES 150/80 R17
REAR TYRES 240/50 R16
FRONT SUSPENSION Kayaba 43mm
upside down forks, 120mm travel
REAR SUSPENSION Kayaba black
spring twin shocks with 5 position
adjustable preload, 105mm rear wheel
travel BRAKES FRONT Twin 320mm
floating discs, Nissin 4piston fixed
calipers, ABS
BRAKES REAR Single 316mm disc,
Brembo 2piston floating caliper, ABS
FEB 2015
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67
Beginning production in late 2016, the Ford GT will hit the road in select
global markets to celebrate the 50th anniversary of Ford GT race cars at
the 1966 24 Hours of Le Mans.
Author: Chandan B Mallik
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Spaniard Marc Coma and Qatari Nasir AlAttiyah were crowned champions for this
years edition in their respective categories
76
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77
WRC
Volkswagen
dominates
seasons opener
with dream1-2-3
podium finish
78
FEB 2015
vercoming complex
logistics, unpredictable
weather and constant
changes in grip [main features
of Rallye Monte-Carlo]. the
hard-fought season-opener
saw nine-time world champion
(and seven-time Monte Carlo
Rally winner) Sbastien Loeb
return with Citron, but
ultimately it was the VW team
taking a commanding 1-2-3
finish. Sbastien Ogier (with
Julien Ingrassia) finished first,
followed by Jari-Matti Latvala
(with Miika Anttila) in second
and Andreas Mikkelsen (with
Ola Floene) in third, all of them
in the Volkswagen Polo R WRC
that was just updated in time
for the start of the season.
It was only the second time
VW has locked out the podium
since hitting the scene two
years ago, following the
German teams 1-2-3 finish in
Australia last season en route
to its second consecutive
world championship. This also
marked the second year in a
row that Ogier and VW have
won the Monte, after narrowly
losing out to Loeb in 03.
The achievement in Monaco
F1
Automans take
Not really.
More than a decade ago, the
idea of hosting a Formula One
race in the Middle East was
completely foreign, in more
ways than one. But in 2004,
the Bahrain Grand Prix brought
F1 racing to the region for the
first time, and in 2009 another
was added with the Abu Dhabi
Grand Prix. And soon the
southern shore of the Persian
Gulf could have another in the
form of the Qatar Grand Prix.
Located in between Bahrain
and Abu Dhabi, the emirate
of Qatar boasts the highest
concentration of wealth of
An F1 race in Qatar? Despite all the media reports to the contrary, we believe that it is only a matter of how soon rather than
if. Yes, Bernie has indicated that he has a gentlemans agreement with Bahrain over exclusivity in the region, but then he
managed to get Bahrain to agree to Abu Dhabi joining the bandwagon. What is to prevent him from getting the three parties
to sit and agree? We have no illusions about Bernie Ecclestones love for money, nor about Qatars ability to dish it out. And
with the single-minded focus that Qatar has lavished on becoming a sort of sporting hub for the region, why would they stop at
Superbikes and MotoGP?
So what does he have in his arsenal to get the two current race hosts to agree, despite their reluctance to cede an additional
race to Qatar? For starters, Bahrain has been on a sticky wicket over the past few years over internal issues and it only needs
a change in mindset to get the F1 administration cancelling events there on security grounds. As for Abu Dhabi the approach
could be longer term, but then we dont know if any agreement actually exists with them for exclusivity.
Unlike in the case of FIFA, where allegations of money changing hands for the vote are still hanging over the deal, any
agreement with F1 will be very much above board and will definitely involve a whole lot of money. The issue that will have to
be addressed then is spectator presence. And the track will need to be upgraded, as will its surroundings and approaches from
Doha. Our bet is on the first Qatar F1 running in 2018.
FEB 2015
79
Runaway success
and consumption
Eighteen billion dollars isnt chicken feed. Despite the numbness that sets into your
mind as you hear about the trillions of dollars newly minted and pumped into the global
economy by the United States over the past few years, billions still manage to catch our
attention. Sadly, this is at a juncture when its little brother the million (it isnt as if 90%
of the worlds population would sneeze at getting a million dollars, but then on a global
level its pass) no longer matters.
After the heydays of global oil majors, it is now the turn of Apple to announce the largest
quarterly profit in history (with a caveat or two). Sadly, this huge profit comes at a time
when most of the worlds economy is caught in the widening gap caused by the oil price
drop. Chinese consumers have risen to the occasion and lapped up the new iPhone 6
in ever increasing numbers. Apple, while laughing all the way to the bank, has to only
decide how it manages to get its other products and services to be half as successful.
Ironically, the oil majors that had all the standout profits till now are reeling with the shock
of dropping prices, with some even mentioning large scale layoffs as a possibility. Oddly
enough, this time around the saying one mans loss is another mans gain becomes a
truism for those countries that have had a huge fuel bill to pay.
Consumer behaviour drives profits on a global scale, but what is it that influences this
consumer behaviour? Why do we now battle our way onto the Apple bandwagon, only to
desert it for a Samsung one tomorrow? And as the world gets wealthier, how does that
influence trends? An interesting news item surfaced recently about WTO related issues
regarding poultry imports from the United States to India. Apparently the root problem
was chicken legs, which American consumers avoid, but which are much loved by Indian
consumers. This single item has the potential to upset an established market, lowering
costs for the consumer and offering a new player and choice. But will authorities allow
it? Not if they can wish the problem away!
Raj Warrior is editor of Automan and has been in the thick
of the Automotive journalism field from the past 15 years.
Want to comment or have your say?
Email at raj@alroya.net.
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80
FEB 2015
Disruptive technologies and trends are descending on our markets every day, even if our
market loving the rejects of another one causes the disruption. A new approach to low
cost high volume production as is the case with China, people consuming internet and
social media on their phones (to Apples advantage), or even a populace growing its way
up the protein consumption chain like in India, will all change how we spend our money.
Adam Smith said, Consumption is the sole end and purpose of all production; and the
interest of the producer ought to be attended to, only so far as it may be necessary for
promoting that of the consumer. So do we then spend governmental time and effort in
protecting the market for existing producers or allow a real capital driven economy that
places the consumers needs above all? In fact, how much can a government influence
a market anymore, especially if we globalise completely? The new Greek government
seems to think it can do quite a bit absolving itself of any commitment to honour past
debts, while seeking new money to pay for taking Greece back into a consumption
mode. The Euro zone itself looks like it will be doing the same in its own way with its
bigger than expected quantitative easing program. Consumption is the goal of every
authority, mirroring Noam Chomskys views on the matter. Seen at a regional level the
secret of Dubais wealth generation is all about consumption. Irrespective of how enticing
it is to work in the emirate, residents usually end up consuming all their income within the
borders itself. Shopping malls, eating out, rents, fines and luxuries all take their toll on
the wallet but add to the bustle and cheer of a thriving economy. Yes, some of that cheer
is due to the record number of Apple iPhones that are sold there even if most of them
eventually find their way to markets around the world.