Hello everyone!
We’re on the last leg of summer. The week of 25–31 August 2025 saw one major policy initiative affecting the automotive aftermarket in Central & Eastern Europe (CEE):
Romania’s Ministry of Finance signed state‑aid contracts with Dacia (Renault Group) and the German‑owned harness maker Draxlmaier to support major investments in painting lines and electric‑vehicle wiring harness production.
But now let’s get a closer look at them and what they mean:
Romania - August 25, 2025
Romania is channeling over €450 million (2,25 billion LEI) into industrial modernization through strategic state aid. The Romanian Ministry of Finance announced that Dacia and Draxlmaier are among the first beneficiaries, with projects that create jobs, boost exports, and strengthen Romania’s position in the European automotive sector.1
Draxlmaier Project (Satu Mare)
Expands production of wiring systems for electric vehicles.
Investment: 297.2 million lei
State aid: 133.7 million lei
Jobs created: 400+ by 2030
Contribution to economy: 211 million lei in taxes and fees
Dacia Project (Mioveni)
Modernization of car painting process
Investment: 85 million lei
State aid: 37.5 million lei
Contribution to economy: 18.7 million lei in taxes and fees
The State Aid Scheme (HG nr. 300/2024 / Scheme 33/2024)
Purpose: Encourage large manufacturing investments to balance Romania’s trade (reducing imports or boosting exports)
Eligibility: Investments between 50–500 million lei, completed within 3 years, using new tangible/intangible assets
Support: Covers part of costs for construction, equipment, and intangible assets.
Total budget: 2.25 billion lei (~€450 million)
Timeline: Agreements until Dec 31, 2026; payments between 2025–2032.
First session (July–Sept 2024):
45 applications worth 8 billion lei.
10 agreements signed, with 2.59 billion lei in investments and 1.146 billion lei state aid approved.
Titi’s take
By funding Draxlmaier’s wiring‑harness expansion, Romania positions itself as a key supplier of parts within the EU. Dacia’s painting‑line upgrade modernizes the Mioveni plant and could support the brand’s upcoming models. I’m hoping these moves may encourage other OEMs and suppliers to invest in CEE rather than Western Europe.
Germany - August 29, 2025
Reuters reported that German industry association DIHK urged the European Union to adopt a tough stance in trade talks with Washington. German firms want clarity on the baseline 15 % tariff promised under the EU‑US framework, even if tough negotiations hurt short‑term business. They emphasized preserving regulatory autonomy and economic sovereignty.2
UK/Global - August 27, 2025
U.S.‑based LKQ Corporation, parent of LKQ Europe, announced a definitive agreement to sell its Self Service (Pick Your Part) segment for $410 million. CEO Justin Jude said the sale allows LKQ to simplify operations and focus on high‑performing segments.
“The net proceeds from the sale will be used to strengthen LKQ’s balance sheet through debt repayment.”3
Global - August 28, 2025
A consortium including DENSO, Toray, Nomura Research Institute, Honda, MATEC and REVER formed the BlueRebirth Council to build a recycling value chain for “car‑to‑car” materials.
Goals include:
automated precision dismantling of end‑of‑life vehicles using AI and sensors
a digital platform to track material provenance and environmental impact
and a target to promote car‑to‑car recycling by 20354
Germany - August 28, 2025
German lubricant specialist LIQUI MOLY announced it would phase out purple, light‑blue and red canisters in favor of dark‑blue and black packaging to streamline production and logistics.
But why? The change is said to eliminate 3.5 million colored canisters and speed delivery times.5
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