Saturday, March 14, 2009

Dacia Renault Asks For Government Aid

BUCHAREST, Romania (AP) -- French-Romanian carmaker Dacia Renault has requested €170 million ($217 million) in aid from the Romanian government to support its factory in southern Romania, the company's top official said.

Dacia general manager Francois Fourmont said late Thursday that part of the money will be used to help develop a technical center. He also said Renault SA has requested €40 million ($51 million) in subsidies to help Dacia and Nissan providers in Romania with a planned investment of €200 million.

Fourmont said the company is also looking for a guarantee from the Romanian state for a €100 million ($128 million) loan from the European Investment Bank, the Mediafax news agency reported.

The announcement came days after Romanian lawmakers approved €143 million ($182 million) in state aid to Ford Motor Co.

Dacia, which has recently revealed its sales are plummeting, was hit hard by the economic crisis. The factory in Romania, which employs 14,000 people and is located northwest of Bucharest, has closed several times since November to reduce production and cut costs.

Fourmont said Renault SA has invested €1.5 billion ($1.91 billion) in Dacia since buying it in 1998. He said all the subsidies received so far from the Romanian state amount to €75-78 million.

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