Iasi mayor Mihai Chirica considers that the city he manages is the best-suited to host the new car factory that German group Volkswagen wants to build in Eastern Europe, should the company decide to come to Romania.

Chirica said he sent a letter to Volkswagen officials aiming to let them know about what the city has to offer to investors, local Digi24 reported.

The Iasi mayor says his city has the lowest taxes of production activities in the country, a good technical school that can provide well-trained workforce and an industrial platform where Volkswagen can develop its operations, namely the platform of the former Fortus heavy equipment plant. The city also hosts several producers in the automotive industry, such as Delphi, Lear Corporation and Continental.

However, it lacks a highway to connect it to Western Europe. The “Union Highway” that is supposed to connect Iasi to Targu Mures and to Western Europe is only in the intention stage at this moment although the Parliament recently voted a law that makes this highway a priority.

Volkswagen is reportedly looking at locations in Romania and Bulgaria for the new factory it plans to build in Eastern Europe, according to media reports. However, the group may also decide to convert one of its engine factories in Hungary or Poland into a new car plant.

Romania’s poor infrastructure has put off big car makers such as BMW and Mercedes.

editor@romania-insider.com