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Gautam Sharma7 Apr 2010
NEWS

Holden's new man: from Sheikh Zayed Road to Fishermans Bend

The Carsales Network's Middle East-based correspondent gives an armchair critique of how new Holden CEO Mike Devereux fared during his tenure in the Gulf

Holden has installed Mike Devereux as its new chairman and managing director, but who is he, and what assets does he bring to the job? This Dubai-based correspondent has had the opportunity to observe Devereux in his capacity as the president of GM's Middle East operations over the past 15 or so months and can convey at least a general assessment of his abilities (from a humble motoring hack's viewpoint).


The chrome-domed Devereux, 44, is a 26-year GM veteran who got his break with the company in 1984 in Canada as a co-op engineering student. Although born in the UK, Devereux is about as British as your typical NASCAR driver, and his speech is distinguished by a classic American drawl.


Devereux arrived in the Middle East in late-2008 from Detroit, where his portfolio included digital marketing and customer relationship management. Indeed, he's now acknowledged as something of guru on digital marketing within the company, as well as being a certified 'car guy' -- a label that's often been attached to outgoing product czar, Bob Lutz.


But Devereux's Middle East posting commenced at the worst possible juncture. He started on November 1, 2008, just as the full effects of the global financial crisis had begun to rock the region. Property prices were crashing and expats were fleeing in droves as they lost their jobs and didn't want to face the consequences of being unable to pay their debts -- a predicament that lands you in the slammer in these parts.


Devereux also had a hard act to follow as his predecessor, Terry Johnsson, had presided over a period during which GM's Middle East annual sales had almost tripled to 150,000 units. What's more, Johnsson had been instrumental in the introduction of hybrid vehicles to region. Fuel costs the equivalent of 40 cents a litre in Dubai (and it's substantially cheaper in Saudi Arabia), so pushing hybrids here is no cakewalk.


One of Devereux's first major tasks was to address the media at a downbeat Abu Dhabi motor show in December 2008. As if the event hadn't already been dampened enough by the economic meltdown, it suffered a further blow as exhibitors were displaced at the 11th hour by a royal wedding that commandeered almost two-thirds of the ADNEC (Abu Dhabi National Exhibition Centre).


To his credit, Devereux didn't attempt to downplay the magnitude of the regional crisis or gloss over GM's overall predicament (it was on the verge of filing for Chapter 11 Bankruptcy protection at the time). Awkward questions were answered lucidly and with a refreshing dose of candour. He didn't know how 2009 would pan out, and admitted as much.


Devereux's straight talking is an attribute that should go down well in Australia, where a down-to-earth attitude is perhaps more valued than it is in the States. From what I've observed, Devereux doesn't deal excessively in fanfare or hyperbole. Ask him a direct question and you'll get an answer... One as straight as he's in a position to give.


Another personality trait that should go down well in Oz is Devereux's willingness to loosen the tie and ditch the corporate persona over a few beers with journos. In this setting, he's witty, entertaining and has a relaxed way about him.


Devereux's billing as a 'car guy' isn't misplaced, as he showed genuine enthusiasm for the product at the regional launch of the Cadillac CTS-V. He even joined journalists in punting the brutal Caddy around the Dubai Autodrome, but was later honest enough to admit he's not an exceptional steerer.


His CV includes a Bachelor of Science degree in industrial engineering from the GMI Engineering and Management Institute and a master's degree in business administration from Harvard University -- so he has a technical background to go with his marketing savvy.


Devereux would probably be the first to admit his post in the Middle East (essentially a large import operation) didn't require him to make the kind of key strategic decisions he'll have to make at Holden. It was more a case of rubber-stamping and serving as the public face of the company, as all policy decisions had to be approved by HQ.


He has yet to prove his worth as the head of a manufacturing operation, although his knowledge of the Middle East and contacts within it will no doubt be invaluable in ensuring Holden's export program to this region remains viable.


Devereux was recently quoted as saying he expected around 5000 Holden-based vehicles to be sold in the Middle East in 2010 -- roughly the same number as 2009 -- although this figure pales in comparison to the 31,000 vehicles Holden exported to the Gulf in 2006.


Holden has proved a stepping-stone to bigger assignments within GM for Devereux's predecessors -- including Mark Reuss and Alan Batey -- so a successful stint in Australia clearly brings kudos.


Devereux will undoubtedly bring drive and energy to the job, although getting up to speed on the complexities of the Australian market and manufacturing industry will be the first hurdle.


For now, he's saying all the right things, as reflected by this recent quote: "As a self-confessed car guy I fully appreciate the strength of the design, engineering and manufacturing capability of Holden and its importance to the Australian people and economy.


"I am looking forward to continuing the great work of Mark Reuss and Alan Batey and working closely with the Australian and state governments as the industry recovers after the difficulties of 2009."


This could be his sternest test yet.


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Written byGautam Sharma
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