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Over 30% Of Automotive Services In Romania Could Go Bankrupt In ‘09 –Official

The economic crisis and the problems insurance companies face these days might put nearly one third of automotive service centers in Romania out of business, Ion Vasile, head of the Association of Independent Automotive Service Companies (ASSAI), said Friday.
Over 30% Of Automotive Services In Romania Could Go Bankrupt In ‘09 –Official
27 mart. 2009, 13:59, English

"Local automotive service centers have no choice but to suffer the abusive behavior of insurance companies, which seriously affect the insurance industry. Therefore, given the current economic situation, we estimate that over 30% of automotive service centers will be forced into bankruptcy this year and half of employees will be laid off," Vasile said.

Vasile referred to insurer Allianz Tiriac, which supplies car parts for damaged vehicles, and stressed that the automotive service centers that work with Allianz Tiriac can only charge for the repair works.

Vasile also pointed out that the automotive service centers cannot offer warranty for the car parts they mount, as they are not car part suppliers.

The association on Friday signed an agreement with the National Council for Small and Medium-sized Enterprises (SMEs), and thus became the 17th member of the Council.