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Bucharest
September 29, 2022
BUSINESS

Auto industry needs legal predictability and roads

The players of the auto industry demand predictability and unitary policies from authorities, expect demand to pick up and say that a weak spot for Romania is the undeveloped road infrastructure, said Cristian Milea, CEO of Opel Romania, at the conference ‘Key, contact, sales – How we relaunch the auto industry in Romania,” Mediafax reports. Milea added that there is still appetite from investors to enter this industry, despite the regress of the market. Attending the event, Viorel Dumitrescu, counselor with the Industrial Policies Department of the Ministry of Economy presented data about the evolution of the turnover and personnel in the auto sector, during 2009-2011. Among the ‘strong points’ of the auto industry there are the labour cost still relatively low and the trained workforce that can easily adapt to new technologies, the production of Dacia and Ford, the size of the local market and the relatively low motorization rate. On the other hand, among the ‘weak spots’ he mentioned the undeveloped road infrastructure, the massive decline of demand on the local auto market, caused by tougher conditions for car loans, the undercapitalisation of parts manufacturers and the few and insufficiently arranged industrial parks. Christian von Albrichsfeld, CEO Continental Automotive Romania said that the German auto group found in Romania a good business environment for the last 12 years, mentioning as positive factors the positive ratio cost/performance, the support of authorities, the flat tax and the subsidies for investments. On the other hand, the Continental official explained that the reduction of direct investments at local scale these years is a minus for Romania, which lost in terms of competitiveness in this segment, compared to some neighbour states. In his turn, Marius Tudor, secretary general of the Romanian Automotive Producers and Importers Association (APIA) said that the data regarding the sales at 5 months are not consolidated yet and the effects of the Clunkers programme in the market will be seen 2-3 months from now.

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