Automobile Dacia: It’s extremely important to have a strong local market

Interview with Liviu Bocsaru, CFO Automobile Dacia

How did the company’s turnover evolve in 2017?
The figure in lei was on the increase by 11.45% as opposed to 2016. Last year, Dacia registered a 23.1 bn. lei (5.1. bn. euros) turnover.
Car and part sales made up 92% of the total turnover, growing since 2016, because of the excellent mix of models and versions and because of the international sales of CKD (completely knocked down) and SKD (semi knocked down) kits of parts.

How did exports contribute to this growth?
Exports increased by 10% as opposed to 2016. The sales outside Romania (in the EU and outside the EU) of cars and car parts stay at a very high level out of the total Dacia sales (92.6%).
This evolution shows that Dacia cars are highly appreciated both in Europe and on other continents. Exports are a priority for us and we want to best meet our clients’ expectations. Meanwhile, for any car manufacturer, it is extremely important to have a strong local market so that it sells there a part of the production.

In 2016, Dacia’s profit progressed on year-to-year basis. Is the tendency the same for 2017?
In 2017, the result before tax was of 550.5 mn. lei (120.5 mn. euros), an increase of 9% against 2016.

What led to this growth?
For us, it is very important to have an operating profit, because it shows the profitability of current operations and that the company’s resources have been used efficiently. In 2017, the operating profit followed the turnover, i.e. it was higher than the one in 2016 by 57 mn. lei, so the business growth explains – to a big extent – this favourable evolution.

What is the value of investments in Dacia?
The total value of investments made by Groupe Renault in Dacia since 2000 up to the end of 2017 is of approximately 2.3 bn. euros.

They reflect the activities carried out in Dacia, mainly on the Mioveni industrial site. What can you tell us about all the activities run by Groupe Renault in Romania?
For 2017, Grupul Renault Romania had a consolidated turnover of 5.7 bn. euros.

What is the value of investments in Groupe Renault Romania?
Since 2000, the investments made by Groupe Renault Romania amount to 2.8 bn. euros. We are talking about investments in our new products (cars, engines, gearboxes, etc.), as well as investments in the optimization of the manufacturing process (working conditions, automation, quality, cost reduction and integration of new technologies).

What is the forecast turnover for 2018?
The estimates with respect to sales or financial indicators depend on many elements that are continuously evolving. We want to keep the dynamic pace of our activities and, especially, their long term competitiveness.

Source: Dacia