Arie Zeiff: Given the current state of the tourism industry, only large companies can survive.
A merger agreement between car rental companies Europcar, controlled by Champion Motors and EuroDollar, owned by Koor Tourism Industries and Fiat importer Mediterranean Car Agency group, was signed last week. The agreement is due to go into effect on January 1.
According to the terms of the agreement, Champion’s parent company Allied Investments will invest in a jointly held rental company. The sum invested will be equal to 50% of EuroDollar equity and will make Allied a 33% owner of the new company. Allied’s investment is some NIS 14 million. Koor Tourism Industries and Mediterranean Car Agency will each hold 33%.
The merged company will operate under the brand name Europcar, and will manage a consolidated fleet of 2,000 cars via 13 branches around the country. Eurodollar will be the company’s active manager, although management structure has not yet been set at this stage.
Mediterranean Car Agency general manager Arie Zeiff, said the strategic move was mutually advantageous. In his assessment, given the current state of the tourism industry, only large companies could survive.