Brent Valmar, APIA: Car industry shrank 63% in January

“The car industry is compressing on a daily/weekly basis. According to the statistics of APIA, the auto market shrank by nearly 63% in January compared to January 2008”, Valmar pointed out.

The car market is influenced by the massive import of jalopies, which had negative impacts on small and affordable prices, and also by the fallout of the local currency against euro and by the lockdown of lending.

Valmar added that cars had reached abnormal discounts. “The cars will never be as cheap as they are now. There are abnormal discounts in the market that cannot be economically supported”, Valmar added. Dealers are still on profit as their car stocks were imported at a lower currency exchange rate.

Jalopy program is very likely to start within ten days, and in the second part of the program it will be proposed a solution to unlock leasing financing.

“If everything goes well, the program will be resumed in ten days. The hard nut is the access to loans, and volumes may not be achieved. We’re considering the option of forwarding a proposition in the second part of the program unlock leasing financing”, said Valmar.

Financial crisis sends new-car registration figures down 52.8%

The number of new-car registration in Romania dropped 52.8% in January this year, from January 2008, down to 19,756 units according to DRPCIV.