Tiriac drove Mercedes sales from 17 cars in the '90s to 8,000 units per year

26 nov 2009 Autor: Bogdan Alecu

In the '90s, when you saw a Mercedes in the street, you knew exactly who the owner was. In the past years, the German brand has become a volume brand, with almost 8,000 sold units and 400m-euro turnover. Automotive industry people who have worked with Ion Tiriac, the one who brought Mercedes brand in Romania, say the businessman's decision to exit imports of the German brand is natural, the more so as the main car business is now distribution and not imports, as it was in the '90s. Businessman Ion Tiriac, controlling Tiriac Holdings group, has withdrawn from the import business of Mercedes-Benz Romania, by selling the 49% stake he held in the company to Germany's Daimler AG, according to the representatives of the two companies. Still, Tiriac has retained part of the German brand's distribution, as he owns 7 Mercedes-Benz dealerships out of a total of 31 centres and car servicing facilities. The 7 centres last year generated over 220m-euro turnover, but in the context where each centre sells at least another car brand.
Radu Merica, a former manager with Tiriac Holdings, considers Ion Tiriac's exit from Mercedes-Benz imports is a natural decision.
"Nobody has done on the Romanian car market what Ion Tiriac has done for Mercedes-Benz. At the same time, in Romania Mercedes-Benz brand is associated with Ion Tiriac and the volumes that have been reached are because of the development of this business," said Viorel Niculescu, former manager of Romcar, Ford importer part of Tiriac Holdings.
Ion Tiriac's withdrawal from Mercedes imports is the businessman's first exit from the car industry, but also the only deal on a market that has shrunk by 50-60% each month of this year. Mercedes-Benz importer's sales also felt this fall, with the company reporting a 58% decline for the first 10 months of this year, to 3,300 units. Thus, the company's turnover may also come to account for just 60% of last year's level.