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