Ford and Peugeot invest in rental market
Folha de S. Paulo 07/29/10
At least two makers are fighting heavier to increase their businesses in the car rental market in the country: Ford and Peugeot. Nearly 15 days ago, Ford closed a contract with Localiza, one of the largest companies in the sector, for the sale of 6,000 vehicles. 4,000 of such total are models of the Fiesta line. The other 2,000 vehicles regard the EcoSport, Focus, Fusion and Ranger. Peugeot has recently entered into a commercial partnership with the Abla (Brazilian Association for Car Rentals) whose members are offered cars at better prices. The rental market earned R$ 4.37 billion (US$ 2.2 billion) last year, which corresponded to 9.5% more compared to the result of 2008. Until December 2009, the fleet of the sector amounted to 363,456 cars.Ford holds 3.92% of participation in the rental market, which is headed by Volkswagen (29.52%), Fiat (27.32%) and GM (23.74%), according to data of the association of the car rental companies. "It is the first time we close a contract of such size. So far we had only closed occasional contracts to supply 100 to 200 cars per agreement", says Oswaldo Jardim, Ford national sales manager. After the agreement with Localiza, the maker foresees increasing its share in the rental market to 11%, same percentage Ford has in the sales made in the retail. According to Jardim, the increase of the businesses in the car rental market was possible after the maker increased its engine productive capacity in the plant of Taubaté, in the interior of SP. The company has invested R$ 600 million (US$ 333.3 million) in that unit.
For Paulo Gaba, President of the Abla, the maker wants to recover market. "Outside Brazil, Ford holds participation that gets to 12% in the rental sector, as in the case of Germany, for example", he says. "It now wants to be more competitive in the domestic market". Peugeot also wants to fight for more room in such market, as informed the Direct Sales Department of the maker. The number of cars made available in the agreement with the Abla was not informed, but it should exceed one thousand units in several models.