French group Renault asks the Romanian government for a state aid of EUR 170m, official says
French group Renault, the owner of the country's largest carmaker Dacia, required the Romanian government a state aid worth 170 million euros for Dacia, the testing center in Titu, the suppliers of Dacia and also for Nissan Romania, said the GM of the local car producer, Francois Fourmont.
As many as 28 million euros would go to the testing center in the southern town of Titu, Dambovita county, and 40 million euros to start an investment program worth 200 million euros.
The group asked the Romanian government guarantees of 100 million euros to take a loan from the European Investment Bank (EIB) for the center in Titu.
Renault received aids of 75-78 million euros, but its investments in Romania exceeded 1.5 billion euros.
Constructions at the testing center in Titu began on September 18. The project was announced in 2006 and could sponge some 450 million euros. The center should start activity at year-end.
Romania's Chamber of Deputies approved on March 10 an emergency ordinance allowing the state to grant a 143 million euro state aid for the American car maker Ford plant in the southern city of Craiova in the period 2008 – 2012, for regional development.
The auto industry in Romania received one of the largest blows in the background of the crisis. Romanian president Traian Basescu declared at the end of January the state will support investments for vehicle production both at Ford and Renault.