The vehicle market is feeling no signs of recession. Figures from the federation of vehicle importers indicate that sales of all classes of vehicles are up for the first trimester of 2008.
Delek Motors VP Marketing Yoav Hefetz does not believe there will be a slowdown.
"The market is correcting for long years with a low level of motorization, and can't slow down," he says. "Cars have a certain life span, and need to be replaced. They are no longer a luxury item, and are not affected by recession like tourism or entertainment."
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But Uzi Gonen, the marketing manager of Meir, disagrees with this analysis.
"We haven't felt signs of a recession yet, but there's a good chance that there will be one," he says. "The global slowdown will affect us too, and we will see just how much in the coming months."
Luxury car sales have grown as well, with Audi leading the way, chalking up 299 sales in the first trimester, up 45% since the same period last year. Mercedes sales are up 45.1%.
Eyal Gelberg, who manages the Audi brand, says it's hard to say how the luxury car market will be affected by the expected recession. Although importers of some of the other luxury brands expect sales to slow in June or July, Gelberg says he is unconcerned.
"As is the case in all sectors of the market, there is a great deal of uncertainty at this point. After all, the effects of recession are mainly psychological," he says, adding that in any case, the company is making no preparations for a slowdown.
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