Local carmakers turnover to climb up to 6.5 billion euros

The total annual turnover of carmakers and produces of spare parts for cars on the Romanian market is to hit 6.5 billion euros in 2008, that is a growth by 16% on the result in 2007.
The growth in 2008 is mainly due to the increase in the production capacity at the Automobile Dacia plant and also at the main actors on the Romanian spare parts for cars market.
“Dacia represents more than 40% of the total Romanian car industry. Nevertheless, we should not forget producers of spare parts. Thus, the first 15 companies totalled 2.7 billion euros in last year’s turnover,” Constantin Stroe, Chairman of the Romanian Carmakers Association  (ACAROM) and Vice-Chairman with Automobile Dacia said.
According to estimates by Ziarul financiar daily, the businesses of the first 15 domestic producers of spare parts for cars in Romania increased by 37% in 2007 as against the previous year.
Nevertheless, the cumulated profits of such companies dropped by 70%. Ranking first in the industry depending on turnover are, according to Ziarul financiar, Continental, Michelin and Takata Petri.
“The production in the car industry continues to grow, with the national car production having increased in 2008 by 13.5%, in the context the car plant based in Craiova ceased activity. In the same time, the suppliers network continues to develop and covers more and more geographical areas,” Stroe said.

A study conducted by ACAROM showed that most companies in the local industry of spare parts for cars are in fact branches of international players or joint-ventures created by such international players, with local producers coming only on the second position.
Most plants producing for the car industry were set up in the Arges county (southern Romania), in Bucharest and Ploiesti (southern), as well as in such counties in central and western Romania (Timis, Arad, Sibiu and Cluj).
Investments of such producers are to continue in the next years too, with Romania still offering small production costs, among which the cheap labour force counts the most. In Romania the average cost of one work hour was evaluated at 2.7 euros. “The Romanian car industry is to consolidate starting with 2010, once the US Ford car maker will start making cars, with the car output in Romania to reach 700,000 cars on an annual basis,” Stroe said.
Fracois Fourmont, chairman with Automobile Dacia said that next year the plant will assembly 400,000 different models of Logan, with 280,000 such units to be exported. Moreover, the company will export to other 7 plants more than 800,000 collections of unassembled cars.
“Such collections are equivalent tin terms of value with approx. 400,000 cars. We deliver 30% of the equivalent of a car to a plant, and even 65% in the case of certain plants, in the end such deliveries coming to reach a value equal to the production of Automobile Dacia,” Stroe said.
In the context the oil price is to maintain over the price of the gasoline, customers of fleet cars are to reorient themselves to such models equipped with gasoline engines, as according to appreciations by ALD Automotive representatives, which is the operational leasing division of them French group Societe Generale.
Representatives of the company also said that the Small and Medium-sized enterprises appeal at such operational leasing services currently eying an upward trend, despite of the fact the multinationals will hold a dominant position further too, with almost 90% of the agreements.
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