Fourmont, Dacia: Auto loan is almost out of sight, the car industry nears a dead-end

“We’re about to shut off the Romanian auto market, because of the tough access to lending. The situation calls for immediate response, if we don’t want to remain on the sideline and watch the industry drowning”, said Fourmont, at the Mediafax Talks about Auto Industry seminar.

The representative of the local carmaker said the interest charged by banks for the car loan is between 17% and 23%, the loans being contracted at a longer maturing date and higher rates.

In January for example, Fourmont added, when for an 8,000-euro vehicle, the loan in lei for 12 years, the interest skyrocketed to 17% from 8%in June 2007, when it was 8.9%. The monthly installment reached in January this year at 620 lei from 357 lei in June 2007.

The minimum income for a family with two members was 1,650 lei in January 2009, from 1,000 lei in June 2007.

Dacia has already 3,000 pending orders for Jalopy program, although it allocated 1,731 units.

“The Remat program should be more accessible. Through the distribution program, we can put on disposal only 1,731 cars although we have orders for 3,000 units”, Fourmont added.

The conditions to unlock the market in Romania, as Fourmont said, are “the limitation of second-hand vehicles, legislative stability (maintaining the car tax), and increase accessibility of Remat program.

This, year, a third of the production output will go to exports “We want to expand in new markets through the launching of Van and Pick-Up in Europe and in other countries. Dacia models will be shipped to 60 markets this year”, said Fourmont.

This year, Dacia will deliver the diesel version of Sandero in Romania, this summer.

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