Minister believes automotive industry makes up 28% of Romania’s GDP

The automotive industry, including over 500 companies, represents an important sector for the Romanian industry, providing about 28% of GDP, economy minister Florin Spataru stated on July 5 at the ceremony dedicated to the transfer of Craiova car plant from Ford group to Ford Otosan - a joint venture of Ford with Turkish group Koc. Each of the two sides controls 41% of the joint-venture.

“The more than 500 companies working in the automotive industry represent about 28% of the GDP,” minister Spataru stated, according to Economica.net.

Although the definition of the automotive industry, including the manufacturing of vehicles but also car parts, may vary, there is a consensus about a 14% share held by this particular sector in the country’s GDP. It is the largest single industry and the biggest contributor to the country’s exports - but it is still far from accounting for over a quarter of the country’s GDP, as implied by minister Spataru.

Such a large figure would have generated rather vulnerabilities for Romania’s economy, as given the sharp transition, the sector must undergo from internal combustion to electric engines. Even for this moderate share of 14% (which is large by European standards), decarbonisation poses real challenges.

There have been circulated rumours about Renault placing Dacia in the group with a focus on internal combustion engines.

Ford’s decision to pass its Romanian factory to Ford Otosan was received with caution as well, despite the Turkish company promising to invest EUR 490 mln and launch electric models.

(Photo source: Facebook/Ministerul Economiei)