Tiriac Holdings auto division see 17% turnover increase

The auto division of Tiriac Holdings, which comprises brands such as Chrysler, Ford, Hyundai, Jeep, Mazda, Mercedes-Benz, Mitsubishi and Smart, saw turnover increase 17% (some $9 million) in H1, 2003. The division last year posted turnover worth 200 million euros, according to company estimates. The company’s 3m euro (rate card) advertising budget for this year should push sales up to 7,500 automobiles.

“The profit rate revolved around 4% in the first half of this year, similar to last year’s levels,” says Marius Pitigoi, general manager of the auto division of Tiriac Holdings.

According to Pitigoi, car sales accounted for 55% of sales, with post-sale services covering the rest of 45%.

The division is also representing Mitsubishi and Smart as of this year, with Jaguar and Land Rover set to join the company’s clients next year.

“We will invest more than 3 million euros this year. We have built the sale and service facilities for Mitsubishi and we began building a home for Jaguar and Land Rover,” Pitigoi added. According to the company official, around eight million euros are usually invested to introduce a new brand to the market.

“Consequently, new brands will not be part of the profit category this year, but will only be featured under Start-up investments and expenses,” Pitigoi stated.

With more than 3 million euros set aside to advertise over 12 categories of operations, the auto division of Tiriac Holdings is expected to sell 7,500 cars this year, up from last year’s 6,300 units.

“We use promotion to inform our target audience on our products, the newly-launched models or we announce tactical messages (price discounts, special packages of free options, additional services included in the price or extended guarantee). We communicate the distinctive advantages of each and every brand, in accordance with their tradition,” Pitigoi says.
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