German carmaker may open plant in Romania-PM

BUCHAREST, March 23 Sat Mar 23, 2013 1:50pm EDT

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BUCHAREST, March 23 (Reuters) - A big German carmaker will likely open a production plant in Romania, Prime Minister Victor Ponta said on Saturday, without revealing the name.

"A few days ago at a government meeting, we ... have approved a memorandum of understanding with one of the biggest and most prestigious companies in Germany, which will open a plant in Romania," Ponta told private television station Antena 3.

"The deal between us is to announce it together," he said, giving no further details.

Romania is home to carmakers Dacia, owned by French Renault and Ford, which have been lured by a cheap and skilled labour force and attractive flat tax on income and profit, but have complained about the poor quality of roads.

In 2008, Daimler chose Hungary over Romania as the site of a new car factory.

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