Dacia estimates 50% rise in German sales and plans no layoffs in 2009

“It would be very wrong of us to think that we are protected from problems from now on.  However, the fairly significant breath of oxygen given by the German market will allow us to administer upcoming actions with a little less stress. The The old car buy back program in Germany will end sometime in August, and we will have to find solutions,” said Stroe.

He indicated that Dacia estimates growth of at least 50 percent on the German market, the third-largest external market in terms of volume, due to the introduction of a €2,500 scrap fee to promote new car sales.

Dacia’s production rhythm was raised, especially to meet the German demand, to a daily 1,200 units from 1,085, with activity in three shifts.

Since the German government introduced its scrap fee for cars older than nine years, Dacia’s sales of its Logan in that country increased sixfold in February, and the model has been named “the ironic crisis symbol.”  One result of the government’s measure was not anticipated.  German consumers do not give up their cars for scrap to buy the German Mercedes, BMW or Audi brands, very expensive even with a €2,500 discount, but rather opt for the €7,500 Logan.