FOCUS: Auto Importers in Romania, Carmaker Dacia Cut Costs, On Lower Demand

A similar approach is seen at Porsche Romania, the largest auto importer on the local market, which imports brands Volkswagen, Skoda, Seat, Audi, Porsche, Bentley and Volkswagen commercial vehicles.

As regards their relation with banks, auto companies face no obstacles whatsoever, considering their long-term partnerships and solid contracts providing stability.

Dacia, the only active auto maker in Romania, chose to discard its financial and commercial forecasts and adopted a “prudent” approach in the light of the financial crisis, the company’s general manager, Francois Fourmont, said.

Dacia halted production on November 13 and 14 at its plant in Mioveni, southern Romania, after it previously halted operations on October 30 and 31, citing lower demand on the local and export markets. The company said it would also halt production between November 20 and December 7.

Car makers currently exclude layoffs, but said they re-assessed their employment strategies, except those companies which faced workforce shortages.

Valmar said Porsche Romania adopted a similar approach, adding the company employs only the people it really needs.

"I do not think that employers in the auto industry plan to increase the number of employees, as they would rather keep current jobs. It is fairly obvious that the economic crisis will also affect Romania sooner or later," saido Constantin Stroe, head of the Romanian Association of Auto Producers (ACAROM) and vice-president of Automobile Dacia.

AutoItalia, importer of brands Fiat, Alfa Romeo, SsangYong, Lancia, Maserati, Fiat Professional (commercial vehicles – e.n.) and Honda motorbikes, said it would continue the employment process to fill vacant positions.

Auto companies consider that the worst case scenario targets the sudden decrease in new car sales, massive imports of used cars older than 8-10 years and the sharp decrease in loans for private individuals, according to Renault and AutoItalia.

Registrations of imported used cars rose 104.8%, to 205,086 units, in the first ten months of the year, compared with the same period in 2007, while new car registrations lowered 2.4%, to 252,935 cars.