A study by "Globes" found that inventory of new cars worth more than NIS 2 billion are within range of Hamas rockets fired from Gaza. Most of the cars are located at the Reem Park in the western Negev, where importers including Toyota Israel Ltd. and UMI Ltd. store cars before delivery.
Vehicle industry sources estimate that nearly 15,000 cars are now parked at Reem because the economic slowdown has reduced car sales. The storage facility of Kia Motors and Daihatsu Ltd., Telecar Ltd., is even closer to the firing line, in Ashkelon. The facility has a 1,000-car capacity, and rockets have hit nearby.
The importers are insured by insurance companies against inventory damage, but not damage caused by war. War-related damage is covered by the purchase tax. So far as is known, importers have not taken any special measures to protect the stored cars, or move them, partly because it is impossible to move so many cars to alternative locations.
Published by Globes [online], Israel business news - www.globes-online.com - on December 30, 2008
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