Romanian Carmaker Dacia Ponders Suspending Production Again, If Demand Stays Low

Dacia halted activity for one month, in several days of October, November, December 2008 and January 2009.

“If the market is further blocked and if orders stay low, we will interrupt activity again. Decisions are taken from one week to the next depending on the orders we get,” company general manager Francois Fourmont told MEDIAFAX Tuesday.

Fourmont added he will once again meet representatives of the Environment Ministry, on Wednesday, to talk about the car tax and the Remat program.

“I will insist on one aspect: urgency. France, known for the slow pace of decisions, adopted in 15 days a plan to save the car industry. Germany has recently made a decision on the third rescue plan of economy and national auto industry. We (Romania – e.n.) cannot react that rapidly,” he said.

He showed satisfaction with the tripled auto tax, claiming that if the car tax applied between the July 1 and December 15, 2008, were to be valid this year too, the local market would absorb 600,000 used cars and only 120,000-150,000 new ones.

“The measure to triple the auto tax was sanitary and necessary,” Fourmont said regarding the pollution tax enforced starting December 15, 2008.

The pollution tax valid between July 1 and December 15, 2008 allowed massive imports of used cars, as the value of the tax for these cars had been lowered and the one for new cars increased.