Dacia Production Boosted by German Scrap Incentive

Thank God (or the banking system) for the economic crisis and smart government incentives. This is what must go through Dacia officials' minds as they see themselves in a position few enjoy to see these days. The Romanian manufacturer intends to step up its production, as demand for the Logan model in Germany increased to an unprecedented level.

"According to our estimations, by the end of February, Dacia will get an order for about 30,000 cars from Germany, that's more cars than we sold there in all of last year," Silviu Sepciu, Dacia spokesman was quoted as saying by Reuters.

After a bad last few weeks in 2008, when the company was forced to stop production for a period of time, early 2009 has proven to be very successful, especially because of a rise in demand in countries previously thought to be premium car oriented markets. "This removes, at least for now, the prospects of a new halt in output," Sepciu said.

This is a result of a simple math exercise. The 2,500 euro bonus given to German buyers represents roughly 25 percent of the price of any Logan or Sandero models. In the light of current economic decline, this is more appealing to the everyday consumer than if he/she would apply the same bonus to a 23,000 euro BMW.

Both Logan and Sandero models are important assets in Renault's future bussines plan. This is a result of the good way the two performed throughout 2008, as sales figures for both models registered worldwide increase.

As similar incentives to the one in Germany are implemented in Spain and Italy as well, spirits must be high amidst Dacia-Renault management.