Romania is one of the countries German carmaker Volkswagen is considering for a new multi-brand car factory, alongside Bulgaria and Hungary, according to Automotive News Europe.

A new car factory would be a greenfield investment worth about EUR 1 billion that would create some 4,000-5,000 new jobs. Another option under consideration is to convert in an engine plant to build cars. Volkswagen's engine plants in Polkowice, Poland, and Gyor, Hungary, are potential candidates, according to sources quoted by Automotive News Europe.

The Bulgarian media wrote recently that Volkswagen was looking at Bulgaria and Turkey for this new factory, but the political climate in Turkey made the group reconsider its options.

Volkswagen’s leadership made it official this month that it was looking to expand its production capacity with a new factory in Eastern Europe as the group’s production structure will also change in the future. Thus, the Volkswagen factories in Emden and Hanover will be producing all-electric cars starting 2022.

Production of the Volkswagen Passat family will be moved to the Skoda plant in Kvasiny, Czech Republic, and these models will be built there together with the Skoda Superb and Kodiaq from 2023. The Skoda Karoq and the SEAT Ateca, currently produced in Kvasiny, will be transferred to the multi-brand plant in Eastern Europe.

Romania currently has two car factories controlled by French group Renault and U.S. producer Ford. Both car factories were built during the Communist regime and privatised after 1989. No new car plant has been built in Romania in the last 30 years but some of the biggest producers of automotive components have opened factories in the country.

BMW builds EUR 1 bln car factory 40 km away from Romania’s border

editor@romania-insider.com

(Photo source: Skoda Auto Career Facebook page)