Romania close to miss another opportunity for third car plant

German automobile producer Volkswagen is still exploring options for building a new car factory in Eastern Europe, and hasn't made any decision yet, Mark Langendorf of the group's Communications Department said in an interview with Serbian newspaper Blic, Tanjug reports.

Profit.ro quoting Serbian daily Večernje Novosti and unofficial sources, informs that the German company has informally decided for Serbia because of "the favorable economic environment and the multitude of parts suppliers." However, the decisive argument in favor of Serbia was the significant deposits of Lithium, an element used in the production of electric accumulators, found in the country, according to the sources.

Among the states that compete for the investment of Europe's largest carmaker are Romania, Bulgaria, Serbia, and Turkey.

On November 18, Volkswagen AG chief Herbert Diess said that the carmaker was looking for a location for a new multi-brand factory in Eastern Europe, which is expected to start production after 2022. The investment is estimated at EUR 1.4 billion. Volkswagen will move to this factory the production of the Skoda Karoq and Seat Ateca SUVs, currently produced in Kvasiny (Czech Republic). The unit will have about 5,000 employees.

Romania currently has two car factories: Dacia at Pitesti and Ford at Craiova.

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