Dacia says profit margins look better than last year. For how long?

Automobile Dacia maintains that its profitability currently exceeds last year’s level, after H1 exports surged by almost 50%, to a level of above 112,000 units, boosted by car scrappage programmes implemented across Europe. Dacia’s financial figures point to a 60m-euro profit last year, with turnover topping 2bn euros. Dacia’s profit dropped by more than half last year from 2007 following a strike, a production halt for more than a month and after employees were sent on technical unemployment during certain periods. “Compared with 2008, we have so far registered improved performance indicators, even in terms of net and operating margins. We’ll see the evolution of demand, toward yearend, but until October we have committed orders,” said Constantin Stroe, Dacia Automobile vice-president. Stroe, also president of the Association of Romanian Carmakers, says the programmes meant to support the car industry in EU countries will be resumed under different formulas at the beginning of next year. “There will be other support systems,” Stroe explained.