2007 was the best year ever for Israel's car importers. Profits skyrocketed to billions of shekels. One of the biggest winners is Kardan NV (TASE: KRNV;AEX:KARD) subsidiary UMI Ltd., the exclusive importer for General Motors Company (NYSE: GM)
In a rare interview, UMI's David Iny told "Globes", "Our working assumption is that sales in 2008 will be about the same as in 2007, about 190,000 vehicles. Within this market, we expect to increase our market share, assuming a low shekel-dollar exchange rate, which will support sales and will enable more aggressive marketing, and taking into account our serious arsenal of models, which will expand this year."
UMI imports GM's Chevrolet, Buick, Chevy Trucks, Cadillac and Hummer (manufactured in North America and in Korea), Opel and Saab AB (SAX:SAAB) (manufactured in Europe) and Isuzu Motors Ltd. (TSE:6202) (manufactured in Japan and in Thailand). UMI also imports trucks manufactured by Isuzu and markets them through its 50% affiliate Universal Trucks Israel Ltd.
"Globes": It was recently reported that GM plans to open an R&D center in Israel. How is this project doing?
Iny: "We cannot yet comment about this venture, which will apparently be called 'GM Israel', except to say that it will be managed by Gil Golan, who previously worked as an engineer at the company, and later worked for GM's R&D department in Detroit.
"However, there is no doubt that the joint activity of UMI and GM over the past decade demonstrated Israel's technological capabilities to GM. GM now buys over $100 million a year worth of Israeli components and technologies, and procurements have double-digit growth. Establishment of the R&D center in Israel was also made possible with state aid. The center is expected to grow and make a substantial contribution to the country."
Supporters of the electric car project in Israel claim that the car importers are opposing it because it's a threat to their business. How do you see the project.
"It's a nice idea, but implementation requires cars that can be built on a regular assembly line, sold for a reasonable price, provide a pleasant driving experience, and meet other requirements of daily use. I don’t see this happening anytime soon."
Published by Globes [online], Israel business news - www.globes-online.com - on January 9, 2008
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