Universal Motors Israel (UMI), which imports General Motors (NYSE: GM) cars to Israel, is negotiating with Japanese auto manufacturer Isuzu for marketing rights and the rights to manage Isuzu agencies in a number of Central European countries.
Sources inform “Globes” that the project is a joint venture of UMI, which imports Isuzu field vehicles and tenders to Israel, and Universal Track Israel (UTI), which imports Isuzu trucks to Israel.
UTI is a joint venture of UMI and the Livnat family. UMI is jointly owned by the Eini family, Kardan NV (TASE: KRNV), and General Motors (10%).
Isuzu made its proposal for a European concession following the successful marketing of its cars in Israel. Israel is considered one of the leading European markets for the D-Max pickup truck, the Trooper field vehicle, and Isuzu trucks.
Isuzu’s agents in Israel are in close touch with the Japanese manufacturer, and have developed jointly with Isuzu innovative methods for marketing the brand, such as the Isuzu Challenge rally. Isuzu also uses these methods in other countries.
Sources at UMI believe that Isuzu commercial vehicles have great potential, mostly in developing economies. 358 Isuzu trucks were delivered in Israel last year, 5% more than in the preceding year.
UMI also delivered 2,728 Isuzu commercial vehicles, the second largest in this market segment. Isuzu delivered 245 trucks in Israel in the first half of 2004, 44% more than in the corresponding period last year, and 1,261 commercial vehicles, up 5%.
At the same time, the Shlomo Sixt car leasing company is reportedly considering expanding its business in Europe. Among other things, Shlomo Sixt is examining the possibility of obtaining a Sixt car leasing franchise for European countries.
Auto leasing sources believe that if the company obtains such a franchise, it would gain an advantage in access to supplies of cars for future parallel imports. The Shlomo group declined to respond to the report. The group has announced in the past, however, that it plans to begin parallel imports when the market is opened.
Published by Globes [online] - www.globes.co.il - on August 30, 2004