Photo: Luxury auto
U.S. business leader Marshall Cogan, in partnership with an Asian fund, plans to invest 1 billion reais (some $459.1 million) in a luxury auto-dealership network that will begin operating in April 2014, the press said Saturday.
Cogan’s United Auto Group intends to adopt in Brazil a model similar to that of his dealership networks in China and the United States.
The group aims to buy four existing networks in the country to consolidate their already existing operations, starting with 120 auto dealerships in all.
New Audi, BMW and Mercedes Benz plants in Brazil, announced in recent months, will also aid the expansion of the dealership network, which expects to earn 6 billion reais (unos 2.8 billion) in revenues in its first three years of operations.
In May, U.S.-based Group 1 Automotive Inc. was the first foreign company to enter the dealership sector in Brazil, through the purchase of a national network for 300 million reais (some $137.7 million).
Brazil is the world’s fourth-largest auto market in terms of sales.