The auto industry generates turnover of EUR12 billion per year and 35 of the 100 largest Romanian exporters are car part manufacturers.
“Romania is more competitive than countries in Western Europe thanks to its much cheaper workforce. But this is not enough. Infrastructure needs to be improved. 12 years ago the authorities promised us we would use the highway to go from Nadlac [western border crossing] to Sibiu [central Romania] or even further to Brasov, but this has not been made possible even now,” Christian von Albrichsfeld, general manager of Continental Automotive Romania, said at a conference organized by Ziarul Financiar in partnership with Orange and Opel.
Albrichsfeld said a truck still took a whole day to get from Brasov to a western crossing point.
Romania is an attractive market for investments in the auto industry, believes the head of Continental Automotive, but that problems such as stability and bureaucracy need to be solved. People also need to have more confidence in services such as education and healthcare.
“Around 40% of those who leave Continental Romania migrate to western Germany. They don’t go there for the wages because although they earn more than EUR4,000 per month, they also pay high rent and high taxes and don’t have much left. They go there for the infrastructure, the stability, the services,” said Christian von Albrichsfeld.
Viorel Dumitrescu, advisor within the Industrial Policies Department of the Economy Ministry, says the Romanian market is still affected by its underdeveloped infrastructure, which makes investors consider other countries before Romania. But he adds that companies such as Dacia and Continental, which support the Romanian education system through dedicated programs, boost competitiveness in the auto industry.
Cristian Milea, general manager of Opel Romania, says there is still appetite for investments as far as car dealers are concerned, with new Opel centers planned at national level, despite the market being on the decline.
“This year we have had several openings nationally, they included Cluj and Bucharest. We have plans for more Opel centers in cities like Targu Mures and Suceava. This year Opel sales went up 3.5% in the first four months to almost 750 cars,” Cristian Milea says.
Another problem affecting the car industry is the import of second-hand cars. Because it is not subject to taxation, it puts holes of hundreds of millions of euros in the state budget and makes Romania’s overall car fleet older.
In the first four months of the year over 70,000 second-hand cars were imported and almost 16,500 new cars were registered.
“In the last three years Romania lost EUR590 million [2011, 2012 and the first four months of 2013] from the VAT that could have been charged to imported second-hand cars alone,” says Nicolae Sorescu, manager of the Radacini group, which owns dealers of Opel, Chevrolet, Mazda, Honda and Citroen.
(English version by Daniela Stoican)