ZF English

Basescu: Romania, still Logan’s core market

10.08.2009, 16:51 11

Romanian president Traian Basescu told Pro TV’s ProMotor that, given the global economic background, it is important that Ford and Renault are provided with everything they need to manufacture cars on the Romanian market.

This year’s failure of the old car scrappage programme, through which almost 17,100 cars of a total of 40,000 were sold in the first two stages, was also triggered by Dacia’s production capacity, insufficient to cover both the domestic and the German market demand, in the president’s opinion.

Although Brent Valmar, vice-president of the Association of Car Producers and Importers, has said that car dealers can do without a scrappage programme next year, Basescu maintains that the funds that were not used this year should be redistributed for 2010.

"Last year, the ‘Rabla’ programme proved its efficiency domestically, but this year, because the German market absorbed Dacia’s production, the programme was less visible in Romania. But the money should be redistributed next year, because the German market will not be there forever. The Romanian market is still Logan’s core market," said the Romanian president.

Following the acquisition of the Craiova-based plant by Ford last March and after missing out on the Mercedes-Benz investment, it is difficult to estimate under the current economic conditions whether Romania could attract a third carmaker.

According to Traian Basescu, what really matters now is not wooing a third carmaker, but for the already present carmakers to be provided with everything they need in order to be able to manufacture cars in Romania.

"It is important that these two major producers that are present in Romania, Renault and Ford, are given all the conditions they need to manufacture cars. And no one could say the Romanian state has not granted them incentives at the right moment. With Ford for instance, we have secured from the EU the possibility to grant them state guarantees for a 400m-euro loan so that they may continue their investment," said Traian Basescu.  

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