Erste: Volkswagen scandal could affect Romania's automotive exports

The Volkswagen scandal may affect Romania’s automotive exports to Germany, which represent about 1% of the GDP, or 2.9% of the total exports, according to Erste. The German car producer is accused of having rigged diesel engine emissions tests in America and Europe. “If the situation worsens and expands to other large car producers in Germany or France, then a larger part of Romania’s exports will be affected, including car kits and components,” reads the Erste analysis. However, Erste doesn’t exclude a possible drop in Romania’s car imports, if the diesel engine emissions crisis worsens, which would reduce the gap between imports’ and exports’ contribution to economic growth. The scandal will not have a big impact on the car production in Central and Eastern Europe, if the scandal is limited to Volkswagen’s diesel engines, Erste’s analysts predict. However, should the scandal worsen, it is more likely to affect the Czech Republic and Poland, where the Volkswagen group has assembly plants, than Romania. editor@romania-insider.com