The car industry, a pillar of the Romanian economy

The American company Ford has announced more investments in the factory in Craiova, south-western Romania.

Daniela Budu, 19.03.2019, 13:03

The car industry is one of the
pillars underlying the development of the Romanian economy, and this sector was
the engine behind Romania’s coming out of recession, said the Romanian PM
Viorica Dancila at the 2019 Car Industry Forum hosted by Craiova, southwestern
Romania. According to the PM, the car industry means products exported with
high added value, both in Romania and the entire Europe, which is essential for
economic competitiveness, and it also creates stable jobs and a better life for
the citizens. The government will continue to support the development of the
Romanian car industry by means of new projects, PM Dancila went on to say. She
admitted that the most stringent issue facing the car industry is the lack of
motorways. She announced that the legislation was changed so as to reduce the
construction deadlines and to develop the infrastructure, including through
public-private partnership. Viorica Dancila:

Most difficulties came from the
prolix legislation with its complicated procedures that generated unpermitted
delays on projects that were much awaited by the citizens and the business environment.
The government looked at the causes and changed the Law on public procurement
and that on public private partnership, in order to unblock important
projects.

The PM announced that one of the
issues discussed with the Ford officials was related to the solutions
identified by the government to speed up major investments in infrastructure. According
to the PM, the new investment projects of the American company were a sign of
trust in the Romanian economy and a premise for the development of the entire
region. Viorica Dancila:

The fact that the Romanian car
industry has reported constant growth in recent years and that in 2018 it
registered a record car production proves that we are on the right track and
that Romania provides good conditions for the business environment.

The PM added that the Romanian
government was firmly committed to continuing to develop policies and projects
meant to support the car parts and car manufacturing industries. At the same
time, the government wants to grant support by means of state aid schemes and
by encouraging the purchase of new, non-polluting cars. At the car forum in
Craiova, the American carmaker Ford announced it would invest another 200
million euros in the factory there, with the aim of increasing production to
250,000 cars annually. According to Ford officials, the company turned the
factory in Romania into one of the most modern such factories in Europe and
became the second largest exporter in the country. The president of Ford
Romania, Ian Pearson, stated that ever since they took over the factory in
Craiova, they have made investments of almost 1.3 billion euros. The company
will hire another 1,700 people by the end of the year to reach a total number of
6,200 employees.