What does an asset light business model entail? How is Tegma’s relationship with its truck drivers?

This term refers to the fact that we do not own a good part of the trucks that we use in our operations, due to the fact that the transportation is carried out by partners. Likewise, most of the consolidating yards for vehicle operation and 100% of the warehouses for integrated logistics operations are rented.

We have ~1500 partner truck drivers in the Automotive Logistics division. These are not Tegma’s employees – instead, they are bestowed with a license that allows them to operate under Tegma’s name and transport the vehicles for our clients. As such, they are paid with a transportation tariff, agreed upon between Tegma, the clients and the trade unions representing the drivers. Our partner drivers are a 100% variable cost.

This model is known for being adaptable to market expansions and retractions, presenting a high level of resilience in terms of results.