by Bogdan Munteanu
The stories of the
thousands of Saxons who left Romania these last two decades are overshadowed by
sorrow; no matter how well they have managed to restore their lives in Germany,
many of them are missing their Transylvanian home very much. What is the story
of your coming back here?
That is true; the Saxons leaving
has been a painful experience for most of our community members. The emotional
bond with their home towns can be still seen today, when the second, or even
third generation Saxons actively participate in the projects developed by the
associations in the field and return periodically to Romania and organize reunions
in Germany on a regular basis.
The activity I carried out for
the Transylvanian Saxons association during the `90s, has kept me close to
Romania and I returned here to coordinate some social projects. While I was a
student I worked as a volunteer for this association and back then, there were
some funds from the German Ministry of Foreign Affairs which, initially, were
intended to go into Ceauşescu`s accounts to pay for the Saxon emigrations. Now
that Ceauşescu was gone, the money became available for other projects.
The Minister of Foreign Affairs
of that time, Hans-Dietrich Genscher, suggested using the money in Romania for
several projects; one of these projects had the target to discontinue somehow
the emigration of the people of German origin. In September 1990, when we had
a so-called census, we realized that 120.000 of these people had left,
especially the young ones. Therefore, we have designated the remainder of the
money for old age home retreats; the first one was built between Rupea and
Sighişoara.
My whole family thought I was
crazy. I was the one who, at age 17 (in 1977), went to the passports office in
Braşov to push for the emigration decision. After spending 10 years in Germany
- where I had integrated, studied at university, had a good engineer`s job at
Siemens – I came back in 1990 to relocate in Romania!
How did you move from
socio-cultural activities to a successful auto business?
The socio-cultural projects I was
involved in since my student time also had an entrepreneurial component and,
together with my experience as a young Siemens employee, have educated my
business sense. The news about BMW`s intention going on the Romanian market
came at the right time, a time when I already had the necessary maturity to
coordinate a business on a developing market such as Romania back then. The
journey was not quick or easy but it was extremely motivating.
You have started with three
employees and 11 automobiles sold in the first year. How difficult was to get
to the flourishing business you own now?
In 1994, I started the business
in the first office building of Bucharest, Sitraco Center, located in the
Unirii area. A year later, the Sofitel Hotel opened and we had a small showroom
there, with room for just one car. After that, I bought the land in Otopeni and
I started the construction in `97. In `98, I had the grand opening and I was
all alone on that field.
I had great legislative problems.
It was very hard to do decent commerce through a company. Immediately after
the Revolution, commerce took place between natural persons; a modest customs
duty of 100 Marks was paid. In September 1994, a customs duty was introduced -
50 % for legal persons - and it blew us away. If we cashed in the money for a
car and didn`t exchange the currency immediately, we`d lose 10%. We cashed in
80.000 Marks, but the next day we had 8.000 Marks less.
At a later time, we lobbied
through the Association of Automobile Producers and Importers for the
introduction of a leasing law that made commerce more civil. We didn`t have to
pay taxes on the leasing imported cars, but only 20% of the residual tax. We had
14 good years, almost every year the sales doubled. Each cent I earned was
reinvested on the country`s auto service network.
Were you affected by the
economical crisis of 2008-2009?
We had a drop in the premium
segment, but not so much as other brands. We have a stable clientele who change
their cars regularly after 2-3 years. When this time is near, the sales persons
may already contact the clients. In 2009 we said that we could go back to the
numbers of 2007 only in 2014. And this is the first growth year, because so far
we only had degrowth. But, we are still far away from what we had in 2007-2008.
Between 2004 and 2008, the market
was overheated, the banks were too generous, the leasing firms were approving
the contracts with their eyes shut - this was a phase of the market growing up.
Now, even after six years, the banks are reserved.
How does Automobile Bavaria
Group look today, in terms of number of employees and level of sales?
If we refer also to the MAN
group, the total number of employees in Romania and Germany is almost 1.000
persons. The number of BMW and MINI pieces sold each year has varied a lot in
the last few years due to the market`s uncertainty. Generally speaking, the
last three year`s average is 1.500 cars sold per year in Romania and 2.000 in
Germany.
Regarding the Rolls Royce brand, in Romania we own the only auto service center for this brand in the region. In Germany, our group owns the only Rolls Royce dealer in Munich. Here, we sold 30 cars in 2014.
”There are also some new opportunities – in our case – the new generation of BMW electric cars. Automobile Bavaria will soon become dealer and authorized service for these automobiles.“

Beyond the quality of the
brands you sell, was your success due to certain leader abilities?
During the 20 years since I have
started Automobile Bavaria, I have never stopped for one moment playing an
active role in the company`s management. Even today, there are clients who
contact me personally whenever they buy a car or to resolve a repair problem.
But, it is very important to have valuable people around you, a team who lives
up to the brand`s expectations, has a vision and conveniently reacts to the
changes of the market.
I have never stayed in one place,
I took over other brands. I have always been on the move. While the crisis was
here, I moved to Germany and invested there. And right now, I am again looking
for opportunities. In Romania there is a certain saturation and I have a
capacity that is not being used.
I have always been against the
flow. In the `90s, when there was no specialized staff in this area of
expertise, I brought the middle management from Germany. Now, it is the other
way around, I am taking Romanians to work there. They have performed here, now
they do a good job in Germany. The IT staff is very much available, so are the
mechanics and the electronic engineers, but not the sales persons because it is
necessary to know the language.
What is the future you
foresee for the Romanian auto market?
When it comes to the new cars
sales, I believe that, on medium term, the volume of sales shall continue to
remain constant and sensitive to the economy`s comeback. But, there are also
some new opportunities - in our case - the new generation of BMW electric cars.
Automobile Bavaria will soon become dealer and authorized service for these
automobiles. In fact, the new models BMW i3 and BMW i8 were presented as a
preview at the “Automobile Bavaria Gala, 20 years”, on the 29th of September
2014.
Automobile Bavaria Group pays a
special attention to the used premium cars segment. This year we have
reorganized this division within the group and came up with a new strategy. We
have a series of competitive advantages that we can provide to our customers,
from a fair evaluation of the cars and warranty provision to purchase and
finance channels.
The selling of trucks can
be a good economic indicator. As the group you manage is also selling MAN
trucks, can you diagnose the Romanian economy?
Yes, the trucks represent a good
indicator in terms of investments the companies need to make within an
economical system. But this also applies to the investments in expensive goods
and the trucks are expensive.
This is the reason why the truck
market decreased since the 2009 crisis and is coming back with more difficulty
than the rest of the economy. The purchase of trucks requires capital and
financing lines and the Romanian companies are still having a hard time to
access these. Therefore, many clients purchase used trucks.
Last year approx. 17.000 used
cars were sold in Romania and only 4.000 new trucks. A normal volume sales of
new cars, for a country as Romania, is somewhere around 20.000 pieces. In
2014, our prognosis for the trucks` market is a total volume of 5.000 pieces,
which represents a quarter of a normal year.
Do you think it is possible
to increase the Romanian drivers` level of education?
I believe that the larger number
of fines represented a step forward. Unfortunately, there are many Romanian
drivers who are very rebellious to the point where the lives of people are
being lost. Between `94 and `98 I have commuted between Bucharest and Braşov
each week, I know how it was like… Since then, things got better, including the
behavior in traffic.
Certainly the situation is not
ideal, but you may go to Italy for example and see that things are not better,
especially in the South! Then, in any European country there are these
so-called weekend drivers who go out once a month, and don`t have that much
experience. Second, there is the highway shortage …
Do you think it is possible
to see these highways constructed sometimes in a foreseeable future?
I am very optimistic, I wouldn`t
be here if I didn`t have faith. A lot was done, but a lot is yet to be done. In
the `90s I could see with my own eyes how quickly the Austria – Budapest
highway was built, partially also in Romania. All the considerations say that a
country who wants to open, develop and attract investors must pay attention to
its infrastructure.
Which are the dearest
projects you have developed through the foundation that has your name -
Michael Schmidt Stiftung -, and what are your future plans?
I have set-up the Michael Schmidt
Foundation when I turned 50 years old (in 2010), and my intention was to
consolidate all the charity projects that I have developed and initiated all
these years. We focused on restoring and invigorating the Saxon patrimony in
Transylvania. An important step was made in 2012, when, together with artist
Peter Maffay, we have launched a large cultural project called “Haferland
Week”; the project takes place each year and includes several places in Braşov
County, such as Saschiz, Rupea, Bunești, Criț, Viscri, Fișer, Meșendorf and
Roadeș. The project`s first two editions have brought a few thousand
participants and increased the area`s visibility.
The most significant actions and
investments implemented by the Michael Schmidt foundations were done in my home
village, Criț - we have completely restored the 200 years old baroque organ
belonging to the Evangelic Church and rebuilt the village`s former church house
according its original plans. Next year we shall continue the restoration of
two 18th century households.
Another important part of the
Foundation`s activity includes the support of German language education. We
have created the first projects that grant support to students who want to
become German language educators and teachers. There is a great interest to
learn German but there are not enough teachers. In Bucharest there are
American, British and French schools but if there were two private German high
schools, they`d be packed with students.
The architectural treasures
can be restored; the traditional costumes can be kept in museums. But to whom
do we pass on the values of the Saxon communities and their life style that
marked Transylvania`s history and also influenced the Romanian people up to
this day?
This is one of our Foundation’s
objectives, which, together with other similar organizations from Romania and
Germany and with the Transylvanian Saxons, is making constant efforts to
preserve and convey these messages to the future generations. If you visit
these areas, you will easily discover the Saxon stories and traditions, proudly
promoted by the locals.
That is why I invested in Criţ,
my home village; I have restored the former nine room church house so that
tourists from around the world can visit it. My wife would like to organize
educational camps for children there.
I am in favor of the Saxons
coming back, as many of them as possible. Many of them left with
disappointment, but it is a true joy to see young people born in Germany who
want to know their roots. I have two nephews from my sister, they are over 20
years old and were born in Germany; they take Romanian classes and come here to
visit at least once a year.
Despite of what could be an
advantage – hundreds of thousands Saxons and tens of thousands of Romanians
living in Germany, many of them having successful careers – Romania’s image in
Germany is not quite flattering. Why is that?
Unfortunately, the German press
does not have a positive attitude towards Romania. This fact is rooted in the
`90s, when there was a lot of talk about the street children, then the gangs
stealing money from ATMs. The tabloids love to write about scandals. The
positive issues are not of interest. We need to have more positive
communication.
On the other hand, Germans and
Prussians are more conservative people. When they do business they need to know
nothing bad is going to happen. The Austrians are more open-minded, more
relaxed. We can also see this in history; and the saying “Balkans begin in
Wien” is true. We can see this fact in the Romanian banking and insurance
system that is controlled by the Austrians.
As a person who has daily
activities in both worlds, personally speaking but also running the businesses
I have built, I can confirm that once the visitors of our country overtake the
bad publicity, their opinion changes very easily and they are impressed with
what we have here.

