North American Car Dealers Look to Parallel Market Reform in Israel

TORONTO, October 1, 2010 -- Recent legislative changes allowing for parallel market cars to be imported into Israel have caught the attention of car dealers in North America. Vehicle exporters in North America are now turning towards selling to the newly opened market in Israel.

The legislative changes allow more than one dealer to import a particular brand. The changes were made to increase competition and allow consumers to benefit through parallel market imports.

"In many countries around the world, there has been a long history of parallel market imports," notes Robin Jones, President of Techlantic Ltd., a dealer in Canada that exports vehicles around the world. "The parallel market can bring increased product choice and price advantages to a market."

The recent changes in Israel are similar in purpose to legislative reform in Europe a few years ago. Europe adopted new laws to facilitate car sales from one European country to another. Prices became more competitive across Europe as a result of increased parallel market activity.

"These types of reforms have proven to benefit consumers," says Brian Osler, President & CEO of the North American Automobile Trade Associa

tion (NAATA), a trade association of dealers who export vehicles around the world. "That has been the experience in Europe and North America. We expect similar changes to the Israeli market over time."

For car retailers, the parallel market presents an opportunity to supply cars that are in short supply or otherwise not available in the Israeli market. "The real opportunity for car retailers who import through the parallel market is in standing out from competitors," says Mr. Jones. "Particularly in Israel, where consumers often want to drive automatic transmissions and gasoline engines, retailers can gain a competitive advantage by sourcing inventory from North American exporters."

For further information visit http://techlantic.com.