Top 10 highlights of 2009 for the car market

AutoItalia becomes official dealer of Infiniti in Romania

AutoItalia that has dealerships selling Fiat, Alfa Romeo, Lancia, Ssang Yong, Maserati and Segway in Romania took over as official dealer of Infiniti.

This year, the company launched the new Infiniti G37 Cabrio, at a starting price of €51,300.

AutoItalia sells Infiniti G37 sedan, G37 Coupe, G37 cabrio and EX 37 and FX 50 SUVs. Prices range between €44,000 and €73,000.

The importer expects its full-year sales to stand around 100 cars.

Sixt New Kopel takes over as Chery dealer

Sixt New Kopel that offers operating leasing and car rental services has signed in July a partnership with Chery Automobile, China’s largest car maker, and thus became the exclusive dealer of the brand in Romania.

The distribution will kick off as soon as the cars will receive the homologation certificate in line with the European Union regulation.

Sixt New Kopel recorded a turnover of €12 million and had a market share of 40%. In 2009, the company plans to increase car fleet by 50% from 2008.

The operating leasing and rent-a-car company Sixt New Kopel, part of the Israeli-based Shlomo, holds 25-30% of the rent-a-car market in Romania, with a car fleet of 575 cars.

AAA retreats from Romania

Czech-based used car dealer AAA Auto has decided to temporarily retreat from all foreign markets and focus on its main market of Czech Republic and Slovakia, following to suspend operations in Hungary as of end-March.

The company signed a contract with a local partner SIXT New Kopel about a joint venture in Romania. AAA AUTO Group holds 5% in the Romanian company with an option to increase its stake up to 49%.

In Romania, AAA Auto sold 1,434 cars last year, 45.7% fewer than 2,641 in 2007. The sales of its Romanian branch accounted for 2% of group’s total sales.

In 2008, AAA Autos’s turnover for its Romanian operations fell 50% to €10.1 million, from €20.2 million in 2007. AAA Auto Romania’s turnover accounted for 2.8% in 2008, compared to 4.3% in 2007.

Car scrappage scheme achieves limited success

Car scrappage scheme enjoyed the lowest success rate since the program was put in place in 2005.

Car makers and dealers sold only 32,327 new cars under the car scrappage scheme, namely 65% below the program’s limit, according to Environmental Fund (AFM).

In 2009, 50,000 cars have been allocated in 2009 under the scheme, with scrappage incentive of 3,800 lei, 800lei higher than a year earlier.

Total scrappage grants given by the Environmental Fund exceeded 122.8 million lei. In 2009, the government earmarked 190 million lei to take out of circulation around 50,000 cars, and 38 million lei for car fleet renewal.

In 2008, the success rate of the clunkers program was 76%, with 30,466 applications. In 2007, of 16,500 cars available under the program, 16,444 were sold, thus registering the biggest success rate since the program was put in place in 2005 (99%).

Execs on the move

The retirement of Francois Fourmont, former head of local car manufacturer Dacia, is the most recent management staff change in the automotive industry. This year, the local market has seen a round of personnel changes, driven by personal (retirement) or professional reasons, as a consequence of the economic crisis that sent car sales to rock bottom.

Dacia
Francois Fourmont, the managing director of Dacia since July 2003, and managing director of Renault Romania said he would retire this year and would resign from his position. Jerome Olive has been nominated to replace Fourmont, effective January 2010.

Ford

Ford car manufacturer said it named a new team of executives for its operations in Romania that will officially assume responsibilities for Ford’s sales and service operations in the country next year. Ford has appointed Paul Flanagan as managing director of the new National Sales Company of Ford Romania, effective January 1, 2010. Flanagan acted as head of sales for 188 Ford dealerships in UK.

Flanagan will be supported from Bucharest by Zoltan Brassai, operations director at Ford. Brassai served as director of operations for Romania at Ford EDM (European Direct Markets) based in Cologne, Germany.

Automobile Craiova

Valeriu Girlea has been appointed as managing director of Automobile Craiova, after Lucian Lutaru left his post.

Automobile Craiova is fully owned by Ford Motor Company and has a common capital of 39.7 mln lei, in the form of 18.6 shares with a face value of 2.1 lei.

General Motors

Constantin Avromescu has been the sales, marketing and aftersales director of General Motors Romania after the replacement of Alfred Suter.

Constantin Avromescu has been with GM for more than seven years and had several roles in GM’s marketing and sales department.

Alfred Suter was named brand director Opel with General Motors Switzerland. He oversees marketing and sales operations of Opel in Switzerland.

Renault Romania

Another change in the management of Renault Romania was the departure of Jacques Daniel, commercial director of the company.

Marketing manager of Renault Romania, Fabrice Cambolive, took up the position of commercial director for Renault, Nissan and Dacia brands within Renault Group Romania.

As commercial director, Cambolive will oversee the activity of Renault, Nissan and Dacia car dealers.

BMW Romania

As of September 14, 2009, Stephan Breschan serves as country director of BMW Group Romania.

Breschan replaced Bernd John who assured the leadership of the car maker’s operations in Romania starting January 1, after Carl-Theo Fitzau retired.

The new managing director of BMW brings a 19-year experience in car industry. Breschan comes from China where he served as manager of BMW China training academy.

Tiriac Auto

After one year at the helm of TiriacAuto as managing director, Catalin Gavra stepped down in 2009 in common agreement with shareholders.

Gavra took on his role as managing director of TiriacAuto on July 1, 2008. He was in charge with overseeing and implementing the distribution and car repair network of TiriacAuto across the country. Dragos Draghici, director of Hyundai Motor and Premium Auto (Land Rover, Jaguar) took over the leadership of Romcar (Ford) and M Car Trading (Mitsubishi).

New car sales sink 53% in Jan-Nov

New car sales fell 53% in the eleven months through November this year, to 121,931, from 257,852 in the same period of last year, according to data provided by APIA.

In November, Dacia sales fell to 2,592 cars corresponding to a market share of 26.5%. After the first eleven months, Dacia car maker has a share of 30.4% of total sales in Romanian car industry.

Imported car sales dropped 30% to 7,189 from 10,202 cars.

In the 11month period through November, Dacia takes the leading position with a market share of 30.4% and 37,016 cars sold, followed by Hyundai with a share of 8.3% and 10.104 cars sold, Volkswagen with 7.1% and 8,680 cars, Renault with 6.9% share and 8,381 cars and Skoda with 6.7% share and 8,221 cars sold.

New car sales in Romania fell 55% in Jan-Nov period, to around 140,000, from over 300,000 in the year-ago period.
Car production increased by 13% year-on-year, buoyed by Dacia’s exports that rose 56%.

Renault Roadshow

Renault organized in Constitution Square between 10 and 11th October Renault Roadshow, the first event that included demonstrations ride and drive stunts ever staged in Romania.

Renault Roadshow showcased its Formula 1 vehicles and drivers in a track parade that included demonstrations with Mégane Trophy and Car Toons, ride&drive, stunts, carnival and others.

Race driver Romain Grosjean and demo driver Lucas di Grassi offered a series of spectacular demonstrations in a 600-meter long demo platform. The access was fee-free.

Renault Roadshow Bucharest was part of a series of F1 events organized by the car maker’s formula 1 team in Rome, Lisbon, Seville, Dubai, Sao Paolo, New Delhi, Johannesburg, Moscow, Kiev, Warsaw and at Renault Technocenter near Paris.

Dacia lifts lid on its first concept, Duster

This year, Dacia premiered the new Duster, whose lines preview the 4x4 model that is due to go on sale in 2010, the company said.

According to Patrick Lechapy, design director Amont Renault, Dacia will continue the expansion of its Duster lineup after the launch of the SUV planned for 2010.

Both the 4x2 and 4x4 versions of Dacia Duster will be available with either a 1.6 16V 110hp petrol engine or with 85 dCi or 105 dCi diesel power. The car measures 4.31 metres in length and 1.82 metres.

Around 150,000 Dacia Duster could come off the assembly line in Romania, while the maximum production capacity at the carmaker’s facilities in Brazil in Russia could roll out up to 100,000 and 80,000 cars, said Gerard Detourbet, Renault's entry programme vice-president.

Dacia will bring the new 4x2 and 4x4 versions of Duster in Europe, Turkey, Algeria and Morocco in spring next year and in June 2010 under Renault brand in Ukraine, Middle East and Africa.

Duster is the sixth vehicle in the Dacia range, after Logan, Sandero and Logan MCV, plus Logan van and Logan pick-up.

Tiriac offloads 49% stake in Mercedes Benz Romania

Billionaire investor Ion Tiriac agreed on November 13 to sell 49% stake in Mercedes-Benz Romania SRL to Daimler.

Daimler AG is thus becoming the sole owner of Mercedes-Benz Romania SRL.

“Mercedez-Benz Romania SRL is now a fully-owned subsidiary of Daimler AG”, company officials said.

After selling the interest in Mercedes-Benz Romania SRL, Tiriac Group is pulling out of the German brand import operations, and will remain active partner in Mercedes-Benz’s distribution and servicing business.

Mercedes-Benz Romania SRL (initially DaimlerChrysler Automotive Romania SRL) started operations in Romania since January 1, 2007 and was a joint venture between Daimler AG (51%) and Tiriac Group (49%).

Mercedes Benz Romania fell into the red in 2008, from a profit margin of 3.7% in 2007. Net loss posted by the company in 2008 exceeds €9 million. In 2007, the company recorded a net profit of €13.4 million.

Mercedes’ turnover stood at €394.7 million, up 8.5% from 2007. In 2008, 7,881 Mercedes-Benz cars were sold in Romania.

Daimler AG with its businesses Mercedes-Benz Cars, Daimler Trucks, Daimler Financial Services, Mercedes-Benz Vans, and Daimler Buses, is a globally leading producer of premium passenger cars and the largest manufacturer of commercial vehicles in the world. The Daimler Financial Services division has a broad offering of financial services relating to automobiles.

The current brand portfolio includes Mercedes-Benz, smart, Mercedes-AMG, Maybach, Freightliner, Mitsubishi Fuso, Sterling, Western Star, Detroit Diesel, Setra, Orion, and Thomas Built Buses.

First Ford Transit Connect �made in Romania�

US-based car manufacturer Ford, introduced yesterday the assembly line at the its auto manufacturing plant in Craiova, Romania, rolling out the first early production example of the Ford Transit Connect produced in the country.

The carmaker supplied early November first Transit Connect cars produced in Craiova, both to local and European dealers, such as UK, Germany, Italy, Bulgaria etc.

At Craiova, Ford will assemble 1,000-2,000 Transit Connect, shipped from a plant in Turkey as CKD collections (Complete Knock Down). At the end of the first quarter 2010, the light commercial vehicle will be fully manufactured in Romania.

At full capacity, Craiova will be able to produce up to 300,000 vehicles and 300,000 engines annually and provide employment for approximately 7,000 people from current 3,900.

In 1935, Ford acquired a land plot in Floreasca where it built a modern production plant equipped with the first operational assembly line in Eastern Europe. Around 2,500 cars and trucks would roll of the assembly line annually.