Automobile Dacia

Automobile Dacia must extend flexible work programme

April 8, 2022 | xpath.global

Extension of Flexible Work Programme

Romania’s economy minister announced the need to extend the flexible work programme at car maker Automobile Dacia to preserve jobs amid ongoing challenges. These difficulties include the pandemic, semiconductor shortages, and the war in Ukraine.

Ministry’s Support for Dacia

The ministry is actively seeking ways to support Dacia, which has recently had to reduce work hours and suspend certain operations, according to a press release. The automotive industry faces multiple challenges, including the military conflict in Ukraine, the semiconductor crisis, a shortage of critical raw materials, the pandemic, and rising energy prices. Despite these issues, Spataru praised the efforts of Automobile Dacia and Renault Group to maintain company activity during a visit to Dacia’s plant in Mioveni, Arges county.

Introduction of Flexible Work Programme

Dacia introduced the flexible work programme in August 2020, following an emergency decree by the government. This decree allowed companies to legally pay staff for shorter working hours to preserve jobs during economic hardships.

Potential EU Funding for Microelectronics

The ministry is also exploring the possibility of financing investments in microelectronics through 500 million euros ($549 million) in EU funds available under the national resilience and recovery plan.

Employee Protests for Higher Pay

Local media reports indicate that more than 500 Dacia employees plan to protest at the government building on Wednesday, demanding higher pay.

Dacia’s Performance and Market Share

Despite setbacks from the pandemic and electronic components crisis, Dacia, a unit of France’s Groupe Renault, saw a 3.1% increase in global sales, reaching 537,095 vehicles last year. The company’s full-scope market share rose by 0.1 points in 2021, reaching 3.5%.

Historical Acquisition and Industry Standing

Renault acquired Romania’s Automobile Dacia in 1999 when it was an ailing state company. Dacia has consistently topped the SeeNews ranking of the 100 biggest companies by total revenue in Southeast Europe for the last seven years and remains among the biggest companies in South Eastern Europe.

Source: SeeNews, April 2022

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