Romania is racing Bulgaria for Volkswagen car plant worth of $1.56 billion

Romania and Bulgaria are racing for the Volkswagen factory after the German car maker announced the postponing of the new car factory in Turkey following the Turkish – Syrian conflict.

Initially, the Germans were decided to build in Turkey a 1.56 billion USD car plant, which is a huge investment, even for this Eurasian country. Despite this almost closed deal, Volkswagen put everything on ice after Turkey declared war on Syria, and this determined Bulgaria and Romania to join in the race again.

It seems Bulgaria has the biggest chance here, as they were the second option for Volkswagen, while Romania is the third one. Bulgarian PM announced they made a 250 million Euros offer to the German car maker to built their plant in their country, in Elin Pelin. Romania has offered a generous field near Arad, where both the infrastructure and the labor force are determined factors for a choice.

Both countries have EU membership and both countries offer cheap labor force. Yet, EU memberships means no generous subsidies from both states, while Turkey woul’ve been able to offer.

VW Group hasn’t mentioned a time span for the decision to be taken. Though, both countries hope to be victorious in this race.