Porsche: The car industry will register its first bankruptcies in mid-2009Publish date: 01-12-2008
The auto industry could register its first bankruptcies at the end of the first half of 2009, with most affected companies those which built showrooms, especially in the past year with bank loans, Alin Tapalaga, Manager of Porsche Inter Auto, the retail division of the Porsche Romania importer, told Business Standard.
"We will see the first bankruptcies in June 2009. Those who used borrowed funds in 2008 are very exposed because the development plan was sketched based on last year's realities, when revenues were much higher, and allowed for the paying back of loans," Tapalaga added.
Porsche Romania sold 58,790 cars in 2007, up 35 percent year-on-year. The company is the general importer of the Audi, Porsche, Seat, Skoda, and Volkswagen brands. Its main competitors are Renault Nissan Romania, the Auto division of Tiriac Holdings, GM Romania, Trust Motors, and Auto Italia.
According to companies in the field, car dealers will lay off some 10 percent of their sales staff in the coming five-six months, but will not consider laying off part of the personnel working in service units, despite the significant drop in sales in the past few months. Dealers see reducing working hours or initiating part-time collaborations as possible solutions for overcoming the crisis.
- Insurance market stagnated in 2013 while GDP chare dropped to 1.3%
- The Romanian Leasing Market as of December 31, 2013
- Millennium Bank reports best results since its launch, helped by stronger banking income and cost cuts
- BCR cheapens First Home loans and lowers interest loans for loans in lei
- Millennium Bank's new Salary account clients receive up to 600 lei bonus and their utility bills' payment
- GarantiBank and Seamless introduce SEQR in Romania: the newest mobile payment solution
- Bancpost telecom services, now provided exclusively by Romtelecom and COSMOTE Romania
- Millennium Bank cards offer discounts in Domo stores
- BCR Supervisory Board reshuffles Management Board
- NBR decide to lower the monetary policy rate to 4.25 percent per annum
- Common appointments in Romtelecom and COSMOTE Romania
- Up to 5.5% annual interest rate for Millennium Bank's promotional three-month lei deposit
- Eurozone in recovery mode but gap between North and South still widening
- UniCredit Tiriac Bank and RBS Romania announce the successful completion of the retail clients' migration
- Millennium Bank grants First House loans in lei