Nicolae Sorescu, head of the auto arm of Rădăcini group, whichincludes dealers of Opel, Chevrolet, Suzuki, Saab and Mazda brands,says that besides the old car scrappage scheme the government needsto implement a new system to tax imports of used cars, as well ascars already existing on the market, depending on pollution levels,after the West-European model.
"Those in the West came up with the carrot and stick. The carrotwas the scrappage premium and the stick was the tax on carbondioxide emissions. Taxes for old cars are so high that you end uppaying as much as the cost of the car in one year or two so thateveryone turned to the scrappage scheme," Sorescu says.
The statement comes as sales of new cars dropped further, by 25% inthe first half.
As regards Romania's used car market, it has now come to accountfor over two thirds of total new car registrations.
As both in 2009 and 2010 car dealers resorted to discounts to cutinventories and get cash, cash is not always the solution, Sorescubelieves. He says that the exchange rate fluctuations can triggerlarger losses than in the case money stays immobilised in a carfleet.
Rădăcini group will launch Domino's Pizza franchise this month, thesecond largest pizza chain in the US, after the license wasacquired by businessman Ali Madadi, who controls Rădăcini,according to market sources.
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