2010 forecasts for the local car industry

Mercedes-Benz Romania

Representatives of Mercedes-Benz Romania say the car industry will end 2010 at 2009 level at best, but cars prices will not be as low as this year, as distributors begin restocking and the incentives have been eliminated.

“We will see a slow economic recovery in 2010. I think the car market will start growing both in terms of sales and prices. The sure thing is that car prices will not be as low as this year”, said Michael Grewe, CEO and chairman of Mercedes Romania.

Mercedes-Benz Romania expects car sales to remain at this year level in 2010. “Mercedes sales in 2010 will most likely hover near 2009 level at best”, Grewe added.

Mercedes-Benz Romania has 23 showrooms and 29 authorized services centers across the country.

Subaru Motors Trading

Romanian car industry may rebound at the end of second quarter 2010, said Stavros Kanonopoulos, managing director of Subaru Motors Trading.

“Current data don’t point to a fast recovery in Romanian automotive industry. The market will most likely recover slowly starting with the second quarter of 2010. However, other sectors will lead the car market out of crisis, such as banking or real estate”, said Kanonopoulos.

Subaru expects this year turnover to stand below 2008 level. In 2008, Subaru Motors reported a turnover of €16.6 million and a profit around €450,000.

Proleasing Motors

The representative of Proleasing, distributor of Ford in Dambovita, Prahova and Buzau has a more ‘bullish’ view, expecting annual growth of 10% year on year in 2010.

“Our 2010 prediction for the car industry is built on the assumption of 5-10% growth year-on-year. In 2010, we will focus on service operations and market share”, said Lucian Alexe, managing director of Proleasing Motors.

The distributor’s actions to mitigate the effects of the financial crisis have been centered on blocking orders for new cars and cutting marketing expenditures.

Proleasing Motors has shelved its expansion plan due to the economic crisis that severely hit the car market. The company has three units in the country, its investments exceeding €6 million.

In 2008, Proleasing Motors recorded a market share of 13.6%, with 1,554 Ford cars sold. Collaboration with Ford brand started in December 2001, when Proleasing opened the first showroom in Ploiesti.

BMW Group Romania

The managing director of BMW Romania says the market will remain weak for the remainder of the year, but the downward trend will reverse next year and show the first signs of recovery with a modest growth in sales.

“I expect the market to gain strength for the remainder of the year, but I am optimistic about the market’s performance in 2010. The economy will improve next year, and car industry will start growing slowly”, said Stephan Breschan, managing director of BMW Group Romania.

BMW Group has 15 car dealerships in 12 cities in Romania.

BMW Group Romania, the distributor of BMW and Mini, became operational in mid 2007 under the leadership of Carl-Theo Fitzau, and was managing BMW’s import and aftersales operations in the country.

LeasePlan Romania

2010 forecasts indicate around 100,000 cars in 2010, according to LeasePlan Romania.

“The market began to feel the effects of the recession from October 2008, and I expect it to end year at 60% below year-ago level. Our 2010 forecasts indicate around 100,000 cars”, said Bogdan Apahidean, managing director Leaseplan Romania.

This year, the residual value of cars fell due to the decline of new car market. In an effort to stay afloat, distributors had to lower prices which pared used cars’ value accordingly. Used cars’ residual value fell 15% to date. “If the market conditions don’t improve within a year, we’ll se our 2010 and 2011 balance sheet shrinking dramatically”, said Apahidean.

LeasePlan Romania is the local branch of the Netherlands-based operating leasing company LeasePlan Corporation.