The CEO of Renault Group, François Provost, criticizes the way subsidies are granted through the Rabla Program and questions the use of public funds to support cars imported from outside Europe, under the same conditions as those produced in Romania.
In an interview with Profit.ro, the head of the French group draws attention to the increasing competition from Chinese manufacturers and suggests that the Government find solutions to support the local auto industry.
"Do you think it's normal for public money in Romania, the money of the Romanian people, to be used to support the auto market, equally for what we produce in Mioveni or for what is imported from outside Europe into Romania?" François Provost asked.
He emphasized that the Rabla Program is open to all manufacturers, regardless of whether they have factories and employees in Romania or not.
"So you import a car into Romania, there are no jobs, zero contributions in the country, nothing. And the same support as for what we produce in Romania, where we have 10,000 people plus our suppliers plus all the investments we make in Romania," stated the Renault CEO.
Pressure from Chinese manufacturers on Dacia
Provost acknowledged that Chinese manufacturers are gaining ground in Europe and affecting Dacia's sales, especially in the compact SUV segment, where they compete with models manufactured in Mioveni.
According to him, Chinese brands have reached a 10% market share and are exerting increasing pressure on production in Romania.
The Renault CEO believes, however, that Dacia can withstand the competition through design and hybrid technology, even though Chinese manufacturers benefit from lower costs and practice aggressive pricing.
What he asks of the Government
François Provost argues that the Romanian authorities should analyze how they support the auto industry, including through subsidy policies.
He specified that he does not want to close the European market to Chinese manufacturers, but believes that they should be encouraged to invest and produce in Europe, following rules similar to those applied to European companies.
At the same time, the Renault CEO requested support for the industry in Romania, also mentioning the high costs of electricity.
Renault has warned that the Dacia plant in Mioveni is no longer competitive. The French group requests a reduction in production costs by at least 20%, so that the factory can compete with the company's other plants.