Brazil Localiza Invests BRL1.5 Billion To Buy 52,575 Cars
25 Juni 2009 - 3:30PM
Dow Jones News
Brazilian car-rental agency Localiza SA (RENT3.BR) announced
Thursday an investment of 1.5 billion Brazilian reals ($762.3
million) to renew its fleet for the next 12 months.
Localiza said it acquired 52,575 vehicles. Of the total, 38,330
vehicles will be delivered in 2009.
The purchases will be made from Fiat SpA (FIATY), Volkswagen AG
(VOW.XE), General Motors Corp.(GMGMQ) and Renault SA (RNO.FR).
The funds for the investment will come in larger part from
Localiza's used-car sales revenue, the company said.
"There will not be necessary new loans to face this purchase,"
the company said. "New debts will be contracted only with the
objective of extend the company's debt profile."
Localiza said the purchase of 52,575 cars represents
approximately 2.25% of the total current national production for
the domestic auto and light commercial cars.
-By Rogerio Jelmayer, Dow Jones Newswires; 55-11-2847-4521;
rogerio.jelmayer@dowjones.com