BUCHAREST -- Renault will invest more than 200 million euros ($243 million) to start a new investment project in Romania, the country's Prime Minister Calin Tariceanu said on Thursday.
The world's fourth-biggest automaker already owns Romania's car manufacturer Automobile Dacia, which makes a successful no-frills Logan brand.
"French group Renault decided to start an important investment in Romania of over 200 million euros," Tariceanu told reporters after the government meeting. He did not elaborate.
Romanian media have reported that Renault plans to invest around 215 million euro in a gearbox factory in the town of Pitesti, around 100 kilometers (60 miles) west of the capital.
Renault officials were not immediately available for comment but the French firm was scheduled to hold a news conference on the project later on Thursday.
The French company overhauled the Dacia plant it had bought in 1999 to provide the backbone of its planned exports to emerging markets. The plant produced nearly 88,000 cars in the first six months of 2005, almost double the number it made in the same period of last year.