The new fiscal changes announced by the Government will have chain effects on the entire ecosystem of Leoni Romania suppliers, made up of about 1,000 SMEs, will lead to price increases and will prove to be more serious than anticipated now, a transmitted, at the Marathon of German Business in Romania, organized by PROFIT NEWS TV, Andrada Verdeş, Country Manager Leoni Wiring Systems Romania.
“The effects are much more serious than we can understand now. (…) We no longer have any kind of predictability, a very important element. After all, who generates the budget revenues? The companies (companies, no). Therefore, the companies and how we manage them should be very important, to be able to generate these revenues”, said Verdeş, who leads the local activity of Leoni, one of the most important manufacturers of wiring systems and components for the automotive industry, with 12,000 employees in Romania.
She explained that Leoni, like all large companies, has fixed rules that help it maintain its competitiveness in the market and the quality-price ratio for which it is chosen by customers, so that price is very important and represents a well-defined element, but changing the rules during the game significantly distorts the mentioned ratio.
“All the (price calculation, no) systems have been turned upside down, both for us and for those in the value chain, before us and after us. (…) The entire Leoni ecosystem will be affected, which now contains over 1,000 suppliers, Romanian SMEs, and will more than likely lead to an increase in the price”, says Verdeş.
Because not all suppliers will be able to fold immediately, so as to limit the effects to a temporary loss of profitability, in 2024, some will disappear, thus causing new negative effects, including for Leoni, which invested in those suppliers. Along with the predictability of the business environment, Verdeş mentioned in the chapter challenges and the workforce, given that finding the right employees “is a continuous struggle and puts our imagination to work”.
Leoni Romania has overcome all the crises of recent years without stopping its activity, Verdeş also said.
After the start of the war in Ukraine, the factories in Romania took over part of the orders of the Leoni units on the neighboring market, and almost 200 female employees from Ukraine were helped to come to work for the German company in Romania.
Leoni, one of the most important manufacturers of wiring systems and components for the automotive industry, with operations in 28 countries and over 95,000 employees, recently taken over by the Austrian billionaire Stefan Pierer, opened this summer its tenth factory in Romania. Leoni Wiring Systems Romania has invested over 17.5 million euros in a new facility for the production of automotive wiring systems. Up to 1,200 new jobs will be created in this factory. More than 10% of the group’s total workforce is in Romania, the country where Leoni started its activity in 1999. Leoni has a strong regional coverage, with 10 factories in six counties – Arad, Argeş, Bihor, Bistriţa -Năsăud, Gorj and Mureş – with a production space of 180,000 square meters.
In 2022, the consolidated turnover of the three LEONI legal entities – LEONI Arad, LEONI Pitesti, LEONI Bistriţa – is 640 million euros. The Leoni Group has been present in Romania since 1999, with almost 12,000 employees (more than 10% of the group’s global workforce), three main factories (in Arad, Bistriţa and Pitesti) and several other production satellites. In the spring, Leoni announced that he had reached an agreement with creditors, bondholders and Stefan Pierer, as a strategic investor, on a financial restructuring concept, in order to reduce debts and ensure new liquidity.
2023-10-03 17:01:38
#manager #large #German #company #effects #tax #understand #Source #news
