PRAGUE (Thomson Financial) - Czech used-car dealer AAA Auto Group will
likely shut inefficient branches, delay expansion to Russia until the middle of
next year, and may co-operate with loan provider PPF Group, daily Hospodarske
Noviny reported.
Kamil Ziegler, economic director at the loss-making AAA Auto, told the daily
in an interview he thinks it is unrealistic in the short term that the company
will launch a share buyback, which was approved at its annual general meeting.
He added: "It is likely that some branches will be closed."
"I have no problem with shutting down branches that don't deliver good
numbers."
Asked about the company's plans to enter the Russian and Ukrainian markets,
Ziegler said no expansion will take place until the company's business has
stabilized. If this is successful, expansion could start in the middle of the
next year.
However, if the process takes longer, entering eastern European markets may
not occur until 2010 or later, Ziegler said.
He said AAA Auto may start co-operating with privately-owned PPF, where
Zielger worked before joining AAA Auto in May, helping the central Europe's
largest used car dealer in its expansion.
PPF specializes in providing retail financial services and earlier newspaper
reports said it could offer loans to AAA Auto customers.
However, Ziegler said there are no specific plans yet.
jana.mlcochova@thomsonreuters.com; +420 222 191 108
jm1/wj
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