Scrappage scheme only helped create a voucher market

A rebound of the auto market in the second half of the year is increasingly unlikely according to Herbert Stein, chairman of AutoItalia, which imports brands of the Fiat group, SsangYong and Infiniti onto the Romanian market. He says the only notable change that occurred in the first three months of the year is the creation of a market for “Rabla” scrappage scheme vouchers, which did not, however, influence new car sales.

“We originally expected the first six months of this year to be difficult, and then see a positive trend in the second half. But now I have changed my mind. It will not be like that. The second half of the year will be as difficult as the first. And it will be the same on all segments because when it rains, it rains for everybody,” said Herbert Stein, chairman of AutoItalia.

In the first two months of this year car sales continued to decline by almost 50% against the similar period of last year, with 4,500 cars sold as part of the scrappage scheme since its start on February 18th.

“The effect of the scrappage scheme this year is zero. The only thing it achieved was to create a black market for vouchers. No cars, just vouchers. It was normal for such problems to arise because no-one has three clunkers in their backyard. So they need to be bought. The first to buy the voucher offers 200 euros, and the last 700 euros,” Stein added.