The fourth edition of the program encouraging the renewal of the national car fleet, also known as the Jalopy Programme supplies an impressive budget. While the allocated money did not exceed 50 million lei (1euro =3.63 lei), this time the Environment Fund Administration (AFM) avails of 120 million lei, the equivalent of the advance money for 40,000 cars. The program includes two stages, namely over June 2- Sept 25 and over Oct 25 – Dec 12, Environment and Rural Development Minister Attila Korodi said.
The success rate of the initiative ranged between 91.5 and 99 percent, during the past years.
The system AFM supplies the 120 million lei to the companies part in the program is a controversial one, this year again. The allocation exclusively takes into account the number of cars each accepted company asks, ignoring the demand for certain brands, the market shares or the Romanians’ purchase power. This way, in 2007, Dacia the maker of Logan, the best-sold car in Romania, received an equal quota with much more expensive brands and much lower market shares. Another important problem is the poor communications with the potential clients.
Romania’s car fleet got double after 1989 and reached about 4.5 million cars late last year. As many as 312,532 new cars were registered in 2007, by 26 percent more than in the previous year, while 96,971 new cars were registered by April 2008, by 17.3 percent more than over the same time span in 2007.