Emine Coskun, Ford Otosan Romania: “The turnover tax is threatening the sustainability of investments in the future”

“Since 2022, Ford Otosan has invested 500 million euros to diversify production and transform Craiova into one of Europe’s most flexible and advanced factories.

We have launched our new assembly line in October last year, reinforcing Craiova’s role as a first electric vehicle producer in Romania. In March we have introduced the electric vehicles Courier and Puma Gen-E, in addition to producing the internal combustion vehicles.

Fiscal policies play a significant role in shaping the automotive industry in the future. Unfortunately, frequent changes and unpredictability pose a serious risk to investors,” Emine Coskun, Vice-President Ford Otosan Romania said at Automotive Forum 2025 organized by Automotive Today and The Diplomat-Bucharest.

Key statements:

• The automotive industry needs to have a united stance on harmful policies like the turnover tax that affects our industry significantly. This is threatening the sustainability of investments in the future. The issue has been raised already individually, and through associations like ACAROM as it affects many sectors, not only the automotive industry. You may know that automotive margins are not high, so that’s why the 1 percent tax on turnover hits significantly. Unfortunately, it threatens business planning and investment confidence. It’s crucial not to disturb ongoing operations.
• Clear and predictable tax policies and also incentives will definitely attract new investors into the country. Stability is key for continued growth. Long-term partnerships and supplier development are also vital for us. Romania’s current fiscal climate is not very favourable unfortunately.
• For us, digitalization is another great driver for success. Advanced technologies that we use in Türkiye are planned for Romania as well to boost efficiency with data-driven operations.
• Compared to other European countries, I would like to highlight that improving regulation predictability and also coordination between institutions will definitely enhance Romania’s competitiveness.
• Unfortunately, Romania has one of the highest electricity prices in Europe, 137 euro / MW, compared to 129 euro in Hungary, 105 euro in Austria. This drives a huge competitive disadvantage especially in the automotive industry.
• Lowering costs is also essential for industrial growth and success. In Türkiye, industrial success is largely driven by financial supported measures including corporate tax deductions, low social security contributions and also substantial R&D incentives. These policies help us to boost innovation and strengthen technological capabilities. I believe Romania could also get benefits from this kind of support mechanism.
• In the future, in Romania we need to have lower costs and some support from the Government. Operational efficiency is very important for us and Ford Otosan will remain committed to produce quality vehicles with competitive prices in Romania.