Delahom Acquires JAC Car Import Rights After Automax Collapse

Automaker Delahom announced it has taken over the import activities for the Chinese car brand JAC, a role previously held by the collapsed company Automax. Delahom, which also imports BAIC cars sold at Rami Levy stores, had its acquisition of the JAC franchise revealed earlier by "Calcalist." The deal, finalized over a month ago, was officially announced with assurances to customers from Delahom executives.

The acquisition is significant for the Israeli auto market, not just for adding another Chinese brand, but for testing the viability of rehabilitating failed Chinese car brands and assessing customer costs. The transaction was reportedly valued at 1.1 million shekels, a sum considered small in the Israeli auto industry. This amount was part of a rehabilitation plan approved by the courts and presented by Automax's liquidators. Delahom acquired the import license free of debt, as Automax faced claims totaling 61.2 million shekels, including 43 million shekels owed to Bank Leumi and Bank Jerusalem.

Delahom's announcement emphasized improved service and warranties for customers who experienced issues with Automax. However, the situation is complex, with approximately 40 customers reporting significant problems with their JAC vehicles, including battery failures and parts supply issues. The article notes a high rate of malfunctions among the few hundred JAC vehicles imported by Automax, according to Ministry of Transportation records.

The deal's terms required Delahom to address the problems of existing JAC owners, as stipulated by Automax's liquidators to ensure a solution for dozens of customers awaiting repairs. The announcement, however, only addresses JAC, omitting any mention of two other Chinese brands previously imported by Automax: Yudo and Jinpeng. Owners of these vehicles may be left without recourse.

JAC has a history of changing distributors in Israel, with Delahom being the fourth. Previous attempts by other importers, including Suzuki importer Mekorot, to secure the JAC license directly from China were blocked by Automax's liquidators. Documents indicate that Automax presented two other potential importers to JAC before Delahom's approval, but JAC itself rejected them. The new franchise agreement with Delahom is essentially a new license from the Chinese manufacturer.

JAC's import license has a troubled past, having previously been held by EV Motors and then Automax, both of which faced significant issues. Delahom also imports other brands that have gone through multiple distributors. The liquidators emphasized the need for Delahom to invest in restoring trust in the JAC brand. Furthermore, Delahom will pay the liquidators $300 for each JAC vehicle sold until 2029, and $700 for each truck sold, suggesting a potential focus on commercial vehicles, as JAC is reportedly expanding its commercial vehicle offerings in Europe rather than passenger cars.