Editor's note | What will
drive Cuba in a post-Castro world?
By Lisa Gibbs. lgibbs@herald.com.
Posted on Mon, Oct. 17, 2005 in The Miami
Herald.
After Fidel Castro is gone, two men who'll
be on the first Miami-Havana flight are
brothers Lombardo and Lomberto Perez. Their
business: Selling cars.
Before the revolution, Cubans demonstrated
a huge appetite for automobiles; in all
of Latin America, the country was second
only to Venezuela in the number of cars
per person, according to Robb Report. Lombardo,
owner of Metro Ford in Miami, and Lomberto,
owner of Autocity of Pinecrest, both believe
that hunger will return.
Over the years, study after study has attempted
to evaluate potential opportunities in a
democratic Cuba. Everyone realizes it's
a guessing game. Too much uncertainty, too
many questions. Will the new government
be stable? How bad is the economy? How long
will it take to modernize?
Still, most executives in South Florida
are optimistic that, eventually, investing
in Cuba will pay. In the most recent survey,
ordered by South Florida CEO, almost 65
percent of execs polled said they were likely
to do business in post-Castro Cuba.
Like most, the Perezes' optimism is tempered
by caution. Gearing up to sell cars in Cuba
will require distribution networks, dealership
facilities, technology. More important,
success will depend on how long it takes
before economic growth gives consumers the
ability to afford cars.
As dealer Carlos Planas of Tamiami Chrysler
says, "If we think we're just going
to go over there and sell cars before reconstructing
the economy and helping the people, we are
blind. They need basic transportation like
buses. Cars would be a luxury.''
Says Lombardo: "It will be a slow
process. But after one or two years we'll
see the economy really taking off.''
Lomberto: ''The government will be the
No. 1 market in the beginning,'' not consumer.
"And there'll be so much money flowing
in, from Cuban exiles in Miami, the U.S.
government, European Union, Latin America.''
Lombardo: "At the beginning it's going
to have to be very low priced new vehicles
and used vehicles.''
Lomberto: "It will be interesting
to see how our brands carry over into Cuba.
We both have well-established brands, and
I'm pretty sure the advertising we do in
Miami reaches Cuba.''
Lisa Gibbs is The Herald's executive business
editor. Contact her at lgibbs@herald.com
Madeline Baró Diaz can be reached
at mbaro@sun-sentinel.com or 305-810-5007.
Copyright
© 2005, South Florida Sun-Sentinel
e Inc.
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