CZECH REPUBLIC: AAA Auto leaves Polish market
Czech used car distributor AAA Auto will close its three units in Poland by August 15, 2008, thus leaving the local market, the company said on June 20. It's retreat from Poland reflects the growth of new car sales there and the decline in demand for used cars, which peaked immediately following Poland's accession to the EU.
The company says it has decided to leave the Polish market, as its local subsidiary has been loss-making. Another reason behind the closure is the the great number of used cars imports by private individuals to Poland, it said.
The first two outlets in Warsaw and southern Dabrowa Gornicza will be shut down on June 30 and the third one located in central Lodz will keep operating until August 15.
The company plans to focus on its profitable markets - the Czech Republic, Slovakia and Hungary - and to expand to Russia. AAA Auto will also try to improve the results of its Romanian unit.