Renault group's Romanian operation, which includes car production, subassemblies and Renault Technologies Roumanie development centre, could reach 3.5bn euros at the most after 2009, a value that does not include car sales.
"In the current context, it is hard to go beyond 4bn euros as regards Renault's turnover in Romania. It will settle at a value of around 3.5bn euros," said Christian Esteve, Renault's manager for the Euromed region including Southern Europe, North Africa and Russia, in the context where the French group's turnover will hit 3bn euros this year, excluding car sales.
Renault-Nissan Romania, the company that distributes Renault and Nissan cars domestically, generated turnover worth 424m euros in 2007, up from 311m euros in 2006. As a result, the manufacturing operations coupled with sales could drive Renault group's turnover to almost 4bn euros after 2009.
"At present, the Romanian market can no longer be considered an emerging one, but a competitive one. We're not considering producing Renault models in Romania, but only expanding Dacia," Esteve specified.
At present, the production capacity of Mioveni plant has been raised to 350,000 units to cope with rising demand on foreign markets and next year will reach the maximum capacity of 400,000 units, with 120,000 to be sold domestically. According to Automobile Dacia manager, the remaining 280,000 units will be sold on 50 foreign markets.
"Renault could go beyond the 4bn-euro threshold in Romania provided that car production tops 400,000 units, but this would be possible only if a second plant were built, which is unlikely at this moment," Esteve said.
He says the French group will invest a further 200m euros in 2009. The plan Renault group announced at the moment the new gearbox plant of Mioveni was inaugurated includes total investments worth 600m euros in the next three years.
In 2007, Renault's sales on the domestic market rose by over 37% and reached 32,308 cars, while in the first eight months of this year the brand's sales dropped by almost 20% and if the rate maintains the French carmaker's volume could shrink to 26,000 units, given that 2008 is the first year of the past eight when the car market has not seen any growth.
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