Mexico's Elektra in Deal to Produce Cheap Cars
 Reuters
go to original
Mexico City - Mexican retailer Elektra said on Thursday it plans to build a $150 million plant to produce cheap cars by 2010 in a deal with Chinese automaker First Automobile Works Group.
Elektra, owned by retail and media tycoon Ricardo Salinas, said the plant will produce 100,000 cars per year for distribution in Mexico and Central America.
"Car prices are 5 to 10 percent below the average prices of those currently on the market," Elektra said, but did not specify what type of cars it would be selling.
Elektra's sales model at its stores has been a big hit among low-income earners in Mexico. The company offers long-term credit schemes even for workers like car cleaners or waiters who are not on company payrolls. It also offers no-frills banking services through its Banco Azteca operation.
Many other retailers, including leader Wal-Mart de Mexico, have followed suit, launching similar services.
Elektra, with operations in Guatemala, Honduras, Peru, Panama, El Salvador and Argentina, will build the car plant in the Western State of Michoacan.
Reporting by Cyntia Barrera Diaz; Editing by David Gregorio |
Vallarta Weddings
Business News | November 2007 
Tell a Friend
Site Map
Print this Page
Email Us