Renault Asks for Romanian Gov. Support

Seriously affected by the financial crisis, Renault Group today asked the Romanian government for support, demanding 100 million euros credit guarantees for EIB (European Investment Bank) financing, according to local sources. Renault is the majority owner of the Romanian Dacia, the largest carmaker in Eastern Europe mostly known for its Logan model. Christian Esteve, General Manager of Renault Group Europe, discussed with President Traian Basescu the possibility of aiding the automotive industry but no clear details were actually provided.

However, according to Romanian source Mediafax, the two officials talked about “the continuation of the project at Titu (the future Renault technological center) and the status of sub-supplier in Romania.” Romania's president reckons that the automotive industry needs government help in order to get out of the economic crisis and remain in business.

Renault's Dacia already announced a couple of cost-cutting measures imposed by the global recession, including a one month production cut for its main Mioveni plant. Dacia recorded a remarkable success on several export markets using its Logan model and the recently-launched Sandero is expected to adopt the same ascending trend.

The Romanian carmaker hasn't yet announced job cuts and, according to figures provided by Renault, Dacia's sales were increased by more than 84 percent in October 2008. Approximately 3,000 Dacia Sanderos were delivered to the Americas region while about 5,200 Logans were sent to Iran, Renault said.

“Renault sold 11,569 New Twingo units, up 23% on October 2007. New Mégane Hatchback and Coupé, both launched at the Paris. Motor Show, mark the renewal of Renault’s C segment offering. New Mégane Hatchback, which has been warmly received by the sales network and customers, will be launched from November onwards. Laguna Coupé was launched this month,” the report provided by Renault Group reads.