Sources inform ''Globes'' that the Government Vehicle Administration has cancelled the leasing contract of Albar Ltd. because it cannot supply the vehicles as per the contract.
The Vehicle Administration intends to go back to the direct purchase of vehicles, and has already placed an order for immediate delivery with Ford and Mazda importer, Delek Motors Ltd. These orders are based on delivery contracts that preceded the leasing. The order reportedly amounts to hundreds of vehicles.
Vehicle industry sources believe that the Vehicle Administration cancelled the contract at Albar's initiative, among other reasons. Albar committed to leasing vehicles for very low prices that were barely financially worthwhile.
The Vehicle Administration switched to a leasing policy two years ago, after decades of buying and maintaining vehicles itself. At the time, the decision was considered a major achievement for the vehicle leasing sector.
Eli Elezra's Elezra Holdings Ltd. (TASE:ALZR.B1) owns Albar.
Published by Globes [online], Israel business news - www.globes-online.com - on January 7, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009