Dacia join euro billionaires' club

Automobile Dacia has forecast turnover of over one billion euros for this year based on the doubling of its production from last year’s level to around 175,000 units.

The only other companies in Romania with business of over one billion euros are Petrom, Sidex, Electrica and Rompetrol.

Renault has so far invested more than 489 million euros in modernising its plant in Pitesti. As of April 1, production capacity at the plant will rise to around 750 units per day, compared with the 460 units at the end of last year. To be able to reach this target, the plant has introduced a third working shift and is counting on improved productivity. In the same month, production of the Solenza model will cease and the assembly lines will be adapted to the Logan.

Dacia officials provided no financial data for last year, but in December the company estimated its 2004 turnover at 400 million euros. In 2005, Dacia is set to turn a profit for the first time since its privatisation in 1999 and expects to maintain a market share of 45-50%.

Dacia’s turnover for 2003 came close to 390 million euros and, with the launch of the Logan, which is more expensive than the other Dacia models, the pace of growth of turnover was expected to exceed that of the number of cars sold. Last year’s sales increased by 38.6% compared with 2003 to 95,296 units.

On Tuesday, after almost 37 yeas since the carmaker was established, Dacia saw its 2,500,000th car roll off the production line. The result is close to what Renault achieves in one year. “I am sure that in three years’ time we will see the production of the 3 millionth car,” said Simon Valin, an industrial manager with the company. “Dacia is banking on the international expansion of the Logan model, with 60,000 cars being made for export to achieve this,” said the company’s economic manager, Francois Fourmont.

By the end of 2004 almost 30,000 Logan cars had been manufactured, with orders for the model exceeding 40,000. Logan was launched last September and was aimed at developing markets. Renault subsequently decided to expand sales of the model to Western Europe, starting from the middle of this year. As of June 1, the number of countries Dacia cars will be sold in will rise to 35, with the Logan model also scheduled for sale in France, Germany and Italy. Worldwide, by 2010 Renault plans to produce over 700,000 units of this model annually.
dan.zavoianu@zf.ro