Czech AAA Auto Not Leaving Romanian Mkt But Considers The Option – Spokesman

On Monday, the company’s member of the board of directors Kamil Ziegler said the car dealer is considering whether to continue doing business in Poland and Romania as these markets are loss-incurring for the firm.

"This information caused hysteria in those states. Nothing is yet set in stone and Mr. Ziegler spoke only hypothetically,” Smutny said, adding a decision would be made in July.

AAA Auto Group, operating in the Czech Republic, Slovakia, Hungary, Poland and Romania, registered losses of EUR4.9 million last year. The dealer sold 79,871 cars last year, up 29% against 2006, while its number of branches increased to 45 from 20.

In 2008, the company plans to reduce costs and undergo major restructuring. The dealer plans to focus on the more profitable markets in the Czech Republic and Slovakia and to reduce its number of employees to some 2,500 from the current 3,834.

On the Romanian market, AAA Auto sold 484 cars in the first quarter of the year, 24.8% less than the 644 cars sold in the same period a year ago. The company’s activity in Romania had the lowest contribution to the group’s overall revenues. In 2007, the car dealer sold 2,641 cars in Romania, compared to 3,121 cars sold in 2006.