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In the early 1990s there was no longer any other plant in Europe with similar operations and capacity to TEOCAR S.A., since in order to be viable it needed to produce 200,000 automobiles annually, at a high production cost.
In April 1995, the company suspended its operations, due to the ambiguous state policy regarding industrial production and also its policy as regards to the automotive sector, at a time when
the country’s average growth, over the 1981-1993 period, stood at 0.8%.
The unexpected decision on the scrapping of old cars, in 1991-1992, for instance,
left no room for the company to plan
its production in order to meet the increased demand. When the company rapidly adjusted its production to meet the demand, the scrapping measure...
was scrapped. The company thus ended up with a surplus of cars which could not be absorbed by the market. Moreover,
in 1993, the excise tax brackets were modified, hence consumers turned to larger or smaller cubic capacity cars
than those produced by TEOCAR S.A.
In addition, in 1984, a decision made by the Bank of Greece extended the ban on the sale of cars on credit to, also, cars manufactured or assembled in Greece, while in 1985-1987, the price of the yen had doubled, with a direct effect on Japanese car prices, and by 1989 tariff protection to the expense of imported
TECOM S.A. was established in 1982 adjacent to the plant, for the manufacturing of car seats and metal autoparts for pickup truck cargo beds. Kühller, a refrigerator manufacturing company, whose plant was in Volos, was acquired in 1983. When all three plants were in full operation, they employed 660 people.
1980-1995 The power rising from Volos

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