Ion Tiriac, the businessman controlling Tiriac Holdings with turnover worth above 1.4bn euros, considers the Romanian market still has the potential to climb to over 300,000 cars per year, and dealership network expansion will go on once the market rallies.
"We are at the point where what we have on this segment is enough for us. On the other hand, one must consider that between 300 and 600,000 new cars will be sold in Romania each year," Tiriac said.
The automotive market peaked in 2007, when it reached a threshold of 315,000 cars. In 2008, the market dropped to 270,000 units, and, because of the economic crisis sales will shrink to 130,000 cars, according to market players.
Once sales and the car market pick up, Romania, just like Western Europe, will see dealers' profit margins narrow, but once they do, volumes will rise.
In 2008, TiriacAuto registered turnover worth almost 600m euros, according to ZF estimates, while cumulated turnover of the four importers, Romcar, M Car Trading, Hyundai Motor and Premium Auto, got close to the threshold of 800m euros.
Cost cutting campaigns have not entailed significant personnel reductions at the level of companies part of Tiriac Holdings.
At present, TiriacAuto unit, of car retail made up of car dealers, is temporarily run by Viorel Eremia, general manager of TiriacAuto Brasov, one of the biggest dealers in the network, after the departure of Catalin Gavra. Just like in the case of the holding, where Petru Vaduva was appointed in the CEO position early this year, Tiriac is considering also appointing a Romanian at TiriacAuto.
"Why should I bring an expat at TiriacAuto? Everything depends on the man's capacity, not on his speaking English, Romanian or French. It also depends on how much he costs, too (...)," Ion Tiriac said.
Starting 1st of August, 2010, the Ford import operations o
