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August 15, 2022

Dacia to start the production of Euro 6 engines at the end of the year

Dacia and the Renault Technology Centre of Romania (RTR), part of the Muntenia Auto Pole, yesterday signed two investment projects with the Management Authority for the Sectorial Operational Programme ‘Increase of Economic Competitiveness’ (POS CCE) that will support Dacia in testing the new engines. “The project will help us with investments in a centre of vehicle prototypes and in testing units for Euro 6 engines,” Dacia CEO Nicolas Maure announced. The two investment projects have a cumulated value that exceeds RON 171 M (EUR 38 M) and the non-reimbursable financing of more than RON 62 M (EUR 38 M). The financing will also serve at setting in place elements of infrastructure for the new 4×4 rear deck manufacturing lines and casts for lateral frames and two halls will be constructed for testing engines and vehicles in conditions of safety and without a negative impact on the environment. The Automobile Dacia company will begin the production of engines that comply with Euro 6 environment standards at the end of this year.
Monday, the Management Authority signed a total number of 6 projects with the Muntenia Auto Pole: the two investment projects, a research-development project worth EUR 1.2 M in total for RTR and three projects with a total value of EUR 740,000 which ensure the coordinated implementation of projects. The implementation of the projects will create and secure 108 jobs, they will result in obtaining three innovation patents, the turnover of the Pole will advance by 17 percent and the revenue obtained from exports will increase by 21 percent.
The Muntenia Auto Pole is formed of 30 entities, which include 21 commercial companies and a number of local authorities. The turnover of the Pole is EUR 3.1 bln and the turnover from export is EUR 2.2 bln. “Apart from investments, we are glad because there also are other partners in the competitiveness Pole, so the project will be a real embryo for the counties of Arges and Dambovita that will stimulate the development of all the partners in the project,” the Dacia official added.
POS CCE registered a contracting level of 98 percent at the end of 2013, compared to 56 percent at the end of 2012, while the absorption rate reached 36 percent, according to Adrian Volintiru, state secretary with the Ministry of Economy. He added that payments to beneficiaries in 2013 exceeded EUR 550 M, compared to some EUR 380 M during 2008-2012. The fund absorption rate through POS CCE might increase “near 60 percent” this year, according to the Ministry of Economy. The institution also informed that, until June 30, it will sign all the contracts with private investors, as the state aid schemes under which the financing is extended will no longer be valid.
Competitiveness means infrastructure and wages under control
According to the Dacia CEO, the Mioveni-based plant must keep its competitiveness compared to other Renault facilities, such as the one in Morocco, and the relevant elements with this regard are easy access to the border and keeping wages “at a certain level.” He added that the French group Renault does not intend leaving Romania for the time being, as it is has been present here for 15 years, but on the other hand, with the Morocco factory increasing its competitiveness, it is important for Romania to maintain its own competitiveness, so it can export on the markets of western Europe. Attending the event, PM Victor Ponta said that the Dacia Renault group is “by far” one of the important leaders of the Romanian industry and nobody can imagine Romania without Dacia. Ponta added that 2013 was an “extraordinary” year in economic terms and explained the factors that led to these results. The head of the Executive also reminded that the most difficult part was unblocking the POS CCE. Ponta added that the economic advance achieved last year is also due to industrial factors from the private zone, and Dacia Renault had a significant contribution with this respect. The auto maker currently operates 350 trucks from Mioveni to the border and back every day, the CEO of Dacia and Renault Romania added.
Clunkers Programme, the hope for auto market relaunch
The Romanian market of new vehicles decreased four times compared to 2007 and it is important for it to be re-launched, especially in the segment of natural persons, Dacia CEO Nicolas Maure said. “We hope to have the REMAT vouchers for 2014 by the end of March (for the Clunkers Programme). For 2015, there are several matters that must be taken into consideration, which we will discuss in APIA (Romania’s Automotive Manufacturers and Importers Association),” the Dacia official added. According to the Environment Fund Administration (AFM), Romanians have bought so far almost 13,400 automobiles through the Clunkers Programme 2013, while approximately 19,900 cars older than 10 years were sent to the scrapyard. Out of the total number of bought vehicles, 690 also enjoyed eco-bonuses. The Driving License and Vehicle Registration Department (DRPCIV) announced that approximately 5.98 million auto vehicles were registered in Romania at the end of 2013, up 4.73 percent against a year ago.

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