The Industrial Cooperation Authority (ICA) in Israel’s Ministry of Industry, Trade and Labor has announced the seven years extension of its reciprocal purchase contract with General Motors. During the initial agreement between the ICA and General Motors which was signed in May 2001, with a buy-back commitment for five years, the U.S. company made purchases worth the exceptional amount of about $334 million from Israeli suppliers. In 2005 alone General Motors made about $102 million of acquisitions, even though according to its buy-back agreement the company was only obligated to the amount of $586,272. The purchasing activities of General Motors in Israel were undertaken with the assistance of GM-UMIT, which on the one hand locates suppliers and new purchasing opportunities in Israel, and on the other hand assists existing suppliers.

 

Bina Bar-On, Director-General of the ICA, observed that, “General Motors is an example to the world’s other major vehicle manufacturers. The scope of purchases undertaken by the company in Israel has been significantly higher than the volume of its commitments according to its buy-back agreement, and the Israeli economy has profited from this. In addition, the fact that one of the world’s largest vehicle manufacturers has bought a wide range of Israeli-made products and components is the best possible testimony that the country has much to offer. I’m full of appreciation for General Motors activities in Israel and I hope that more and more companies will follow in their footsteps.”

 

According to Beni Kedar, CEO of GM-UMIT. “General Motors understood many years ago the hidden potential of Israel’s vehicle industry. I’m proud that the State of Israel has so much to offer and I’m convinced that our company’s activities, including investment in locating technologies and suppliers and promoting them to overseas companies, will also continue to flourish in the coming years.”

 

GM-UMIT was founded in 1995 as a joint venture between General Motors (GM) and Universal Motors Israel (UMI) – the importer and distributor of GM vehicles in Israel. This unique company is engaged in identifying and investing in advanced technology R&D in the vehicle industry sector for GM worldwide.

GM-UMIT acts on behalf of a number of GM units, among them the R&D and Planning Center, the Global Purchasing Division, the Engineering Center and more. This activity is unique outside of North America. The company’s Chairman is Avihu Bin-Nun and the CEO is Beni Kedar.