Point S expands in Brazil

Point S, the multi-brand automotive services and tyre sales franchise, has expanded its global network into the Brazilian market through a Master Franchise Agreement (MFA) with local specialist, ATO. The agreement represents a significant milestone for Point S, with South America becoming the fifth continent in which the network has a presence.

ATO’s two shareholder companies, ADTSA and Orletti Group, will be responsible for overseeing Point S’s operations in Brazil, with R$175 million (€35 million) already committed to the project. Under the MFA, ATO’s goal is to build a network of over 200 Point S locations in Brazil within the next five years, starting with three flagship locations in São Paulo, Recife and Vitória before the end of 2022.

Both ADTSA and Orletti Group have a strong automotive heritage, boasting over 140 years of combined experience. ADTSA operates in a number of automotive segments, including passenger and cargo transportation, tyre stores, and car dealer networks, with a presence in 12 states in Brazil.

Orletti group also has an extensive automotive operation, owning businesses across the sector, including car dealers and distributors of buses, trucks and fuel.

Commenting on the landmark deal, Point S International CEO, Fabien Bouquet, said: “Point S has been exploring Latin America markets for over two years now, and our main objective was to enter the Brazilian market, which is one of the largest in the world.

“We are convinced that the combination of our global expertise in tyres and automotive maintenance, our international trademark platform, and the local experience of ATO shareholders will be an advantage to Brazilian auto centres and consumers. We are excited to build a strong Point S network in Brazil with ATO and to extend our presence in Latin America by forging more partnerships with outstanding local businesses.”

ADTSA Vice President, Bruno Tude de Melo, added: “Automotive organisations have always worked with global players, as is the case with car manufacturers, auto parts stores, and insurance companies, for example. Working in this segment, we are well aware that there is a huge gap in the market, and we will concentrate our efforts to grow Point S in Brazil. Our ambition is to open over 200 points of sale by 2027 in Brazil alone.”

Wagner Orletti, President of Orletti group, said: “What sets us apart is our ability to offer a global standard of service quality. This, combined with Point S’ experience of overseeing 5,800 points of sale across four continents, will take our offering to the next level. Brazilian consumers will benefit from a competitive multi-brand offering in tyres and auto parts, which will be supported by Point S’ global purchasing programme.”