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Long-Term Vision Conquers Uncertainty

Óscar Uribe - Grupo Uribe
Director General

STORY INLINE POST

Gabriela Mastache By Gabriela Mastache | Senior Journalist and Industry Analyst - Wed, 06/03/2020 - 18:09

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Q: How do Grupo Uribe’s different business units complement each other to provide a comprehensive array of services to the Mexican market?

A: Grupo Uribe started operations in the gas business. In the 1960s, the government provided concessions depending on the city’s population but companies feared the government would eventually nationalize gas distribution operations. For this reason, the family focused on diversifying its business and we were given the opportunity to open Volkswagen’s first dealership in the country. Grupo Uribe became a pioneer in the vehicle distribution business. The group started to grow focusing on these two branches, although the gas business has always been relatively stronger and our main platform. Grupo Uribe also has a real-estate company that owns the land where our other ventures are located and provides services to the group itself.

Q: What impact will the government’s new policies for the energy sector have in Grupo Uribe’s operations?

A: At the end of the 20th century, there was an important discussion surrounding the liberation of oil derivatives. In that moment, Grupo Uribe and five other gas companies started an investment fund to prepare for competition from international companies. Together, we made a significant effort to build a maritime terminal in Tuxpan and gas pipelines that reach Mexico City. It took us 15 years to complete the project and since the liberation of oil derivatives did not came to fruition until much later, we had to make a co-investment with PEMEX to lease all our facilities to the company.

Although we eventually completed this infrastructure project, which we believed would make us more competitive, we are now wary that the government will roll back the liberation process that started with the previous administration in 2015. Right now, the country is importing gas at a high price and then selling it to gas distribution companies at a lower price, which puts companies like us that also import gas at a disadvantage. On average, PEMEX is selling gas to distributors with a 12 percent discount compared to what it costs to import it.

Q: As a Mexican family-owned business, what would you say are Grupo Uribe’s key success factors?

A: Our philosophy is based on customer service. When the company started, its main focus was to provide service to domestic clients rather than large corporations or groups. Although we are not against having big groups as clients, focusing on the domestic market has always been our core business and service has always been our main differentiator. We strive to always comply with standards like punctuality. Since we have been in the market for more than 50 years, we have very old clients that are not aware that we are their gas providers. We supply them with gas on time and make the charge directly to their credit card.

The same happens in the automotive business. Rather than focusing on fleets, we focus on individual clients and always strive to provide the best possible service so the client returns to our dealerships.

Q: Is there a new sector in which Grupo Uribe would like to venture?

A: We would like to continue consolidating our operations. Through our gas import project, we want to assure our participation in the gas business.

Regarding automotive, we expect to continue working with Volkswagen. We have been working with them for more than 50 years and 10 years ago, we also started working with Hino Motors, which is also a brand focused on service and selling high quality trucks. We have worked with other brands but when we do not share the same values, working together becomes a hard task.

Q: Where do you see Grupo Uribe in the next five years?

A: We have three short-term goals. We want to grow our sales and our client base, strengthen our gas supply and find stability through our imports and with PEMEX and, finally, to improve salaries for our workers.

Fortunately, we have assured the group’s leadership transition within our family, sharing the company’s values with the younger generation. It is difficult for family companies to hold up for more than three generations but my goal is to go beyond that. It is something that does not depend on me, but we have a solid base and I am confident that future generations will be capable of taking care of the group.

Q: What are the challenges of building a well-known brand in the Mexican market?

A: One of the main factors is the attractiveness of the company logo. This, combined with providing good services to our clients and always focusing on their needs, gave us the visibility and position we now enjoy. When the company started there were not that many gas companies, which also helped us to solidify our position in the market and helped us gained prestige.

 

Grupo Uribe is a Mexican family-owned company with 57 years of experience in the market. The group employs almost 5,000 people in the commercialization of gas and in the car dealership business

Photo by:   MBP

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