Junk Car Program To Function As Of March ’09 – Romanian PM

Boc added the number of cars to be part of the program was increased to 60,000 from 40,000, in order to support Romania’s industry and to renew the country’s car park.

“I want you to know that these measures are included in the draft law on the 2009 state budget, to be submitted for debate to Parliament next week,” Boc said.

Romanian new car registrations dropped by 53.1% on the year in January, to 13,815 units, while 5,941 used cars were registered in January, down 52.2% in the same month a year earlier.

In January 2008, there were 29,499 new cars registered and 12,439 used ones, according to data from the license and car registration division within the Ministry of Interior.

The total number of car registrations, including both the new and the second-hand vehicles, were at 19,756 units in January, down 52.8% compared with 41,938 units in the corresponding month of the previous year.

Romanian Prime Minister Emil Boc arrived Tuesday afternoon at the headquarters of Dacia Automobile in Mioveni, southern Romania. He had talks with the company’s general manager, Francois Fourmont, and with vice-president Constatin Stroe.

Dacia resumed production Monday, after the fourth interruption of the activity for two weeks in Mioveni, southern Romania, due to the extreme drop in local and global demand.

The carmaker will produce 1,085 per day, 20% less than the 1,360 units it produced daily in 2008.

“People were paid 85% of the gross individual salary while on technical unemployment, but they want to work and get their regular salaries. Employees came back to work as of today (Monday –e.n.), and everyone in the first shift is at work,” said union vice-president Ilie Iordache.

Dacia has interrupted its activity for about one month, in several days in October, November, December 2008 and January 2009.

Dacia is considering another halt in activity in February – March, if demand is still low.

“If the market stays blocked and demand is low we will interrupt activity again. Decisions are made from one week to another, based on the orders we raise,” the company’s general manager Francois Fourmont said mid-January

The company’s management decided mid January not to renew 300 temporary labor contracts, as it had done with 620 contracts on a limited period at the end of December 2008.

Thus, of the 2,800 people employed for a determined period, 920 remained jobless.

According to Fourmont, the Romanian carmaker might drop in spring one shift, if the auto markets do not revive. Thus, 4,000 employees might lose their jobs.

Dacia might register for January a 75% drop in sales, as demand stood at 50 units daily, compared to 200 units in January 2008.