The Romanian car market, sharply affected by the international crisis, is to drop some 45 percent this year compared to 2008, down to some 180,000 units, according to the General Manager of local Automobile Dacia carmaker, Francois Fourmont.

This means that car sales will be only half of the 2007 peak of some 370,000 units. "I cannot imagine that the market can reach 350,000 cars this year, given that it dropped 60 percent in the first two months. I believe that total sales will amount to half of those in 2007," Fourmont said during an event organized by Realitatea-Catavencu media group, which publishes Business Standard. As far as the Dacia brand is concerned, the French Renault group controlled company estimates that 75 percent of total sales will be outside Romania, compared to two thirds in 2008. Exports are outranking imports since 2005. Furthermore, some 75-80 percent of Dacia cars have been acquired in euro leasing since the beginning of the year, compared to 20-25 percent in 2008. According to Fourmont, the local market will not bounce back as long as the level of interest rates for auto loans is double year-on-year.

"Nobody knows when the crisis will end in the country," he added. Dacia is the only brand that met its quota in the state-subsidized buy-back program aimed at renewing the country's auto park, also known as "Rabla" (old car), of 1,731 units. It received 5,000 orders for Dacia cars, and company officials plan to ask for a quota hike. Furthermore, the Romanian company is also involved in a similar program in Germany. Given that these programs are generating sufficient orders, company representatives are not planning layoffs before October, when the buy-back programs end.

The company posted €2.07 billion worth of business in 2008, 10 percent higher year-on-year, while net earnings dropped by half compared to 2007, to €60 million.

Source: Standard.ro