Ford taking Romanian market seriously
Last year the total revenue earned from the sales of Dacia was €2.8bn which is nearly 2 per cent of the GDP of Romania. According to François Foumont the general manager of the company 85 per cent of the cars produced in Romania are exported. Most of the cars produced are exported to countries like France and Germany. When Renault took over Dacia, the company planned to expand its domestic base with the car. However, with international success of the model most Dacia car produced in Romania are exported. The production of Dacia Cars peaked last year when the company was manufacturing more that 1,300 cars a day. This success of Dacia has forced companies like Ford motors to take the Romanian market seriously. However, officials in Ford feel that changes in Romanian infrastructure are required for the growth of local market.
Renault to launch new Dacia models in Ukraine
Renault is planning to increase the number of Dacia brands available in the Ukraine market. Today, only 5 out of the 90 Dacia brands are available in Ukraine. Renault’s president in planning to increase its market share in Ukraine by combining all Dacia Brands with Renault brands. This will give Dacia brand the required visibility and improve Renault’s market share in Ukraine. Merger of existing resources will help Renault achieve economies of scale and will help improve the company’s bottom line. Also the expenses incurred in promotion of brands will be reduced as Renault will use a common advertising platform for all its brands. Also Renault customers can hope to get low interest rate car financing from the Renault’s finance program. The company plans to increase its market share from a mere 5 per cent to about 17 per cent by the year 2010-11. The company plans to import cars to Ukraine from its Romanian Plant. Renault also plans to increase the number of dealers in Ukraine to increase its sales.