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Subject

Romania's auto industry.

Significance

Car production and sales in Romania have proved robust this year, despite concerns about weakening demand in Europe and global trade tensions. However, there is concern that fundamentals in the sector, especially low productivity, will delay an effective response to technological, climate and regulatory challenges. Moreover, a much stronger policy response is needed to accelerate the phasing out of old, polluting cars and the positioning of Romanian auto plants to compete in the future.

Impacts

The whole European vehicle sector is urgently grappling with climate change, technological change and regulatory pressures.

The expected disruption from Brexit is daunting for both the EU-wide and Romanian auto sectors.

Dacia is still Romania’s main producer, but not all models enjoy equal success.

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