Ion Tiriac, the businessman controlling Tiriac Holdings withturnover worth above 1.4bn euros, considers the Romanian marketstill has the potential to climb to over 300,000 cars per year, anddealership network expansion will go on once the marketrallies.
"We are at the point where what we have on this segment isenough for us. On the other hand, one must consider that between300 and 600,000 new cars will be sold in Romania each year," Tiriacsaid.
The automotive market peaked in 2007, when it reached athreshold of 315,000 cars. In 2008, the market dropped to 270,000units, and, because of the economic crisis sales will shrink to130,000 cars, according to market players.
Once sales and the car market pick up, Romania, just likeWestern Europe, will see dealers' profit margins narrow, but oncethey do, volumes will rise.
In 2008, TiriacAuto registered turnover worth almost 600m euros,according to ZF estimates, while cumulated turnover of the fourimporters, Romcar, M Car Trading, Hyundai Motor and Premium Auto,got close to the threshold of 800m euros.
Cost cutting campaigns have not entailed significant personnelreductions at the level of companies part of Tiriac Holdings.
At present, TiriacAuto unit, of car retail made up of cardealers, is temporarily run by Viorel Eremia, general manager ofTiriacAuto Brasov, one of the biggest dealers in the network, afterthe departure of Catalin Gavra. Just like in the case of theholding, where Petru Vaduva was appointed in the CEO position earlythis year, Tiriac is considering also appointing a Romanian atTiriacAuto.
"Why should I bring an expat at TiriacAuto? Everything dependson the man's capacity, not on his speaking English, Romanian orFrench. It also depends on how much he costs, too (...)," IonTiriac said.
Starting 1st of August, 2010, the Ford import operations on theRomanian market, currently owned by Romcar, will be taken over by anational sales company of the US carmaker, which startedmanufacturing cars at the plant of Craiova this Tuesday. Romcarstarted importing Ford cars on the domestic market in 1992. Thecompany's sales have jumped in the past 18 years, from 60 cars inthe first year in business to over 22,000 last year.
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
