Daimler May Build Transmission Plant in Romania

Daimler AG intends to erect a factory in Cugir, Romania, to make parts for its Mercedes-Benz Cars unit, Handelsblatt reports. The facility would be near the company's existing powertrain components joint venture with the Romanian government.

The newspaper cites unidentified Daimler sources who say the company's supervisory board will discuss the project at its meeting on Wednesday.

Romanian Prime Minister Victor Ponta said last month that his government had signed a memorandum of understanding with a "prestigious" Germany company to open a factory in the country.

In 2008 Daimler considered building a Mercedes car plant in Romania but chose instead to erect an €800 million facility in Kecskemet, Hungary.