Romania: Renault threatens Dacia pull-out
7 March 2011
Rumours that Renault is considering plans to delocalise production for some of the models made for its low-cost brand Dacia to Morocco have prompted concern in Romania. "Morocco threatens ‘Romanian made’ Dacia," headlines Gândul, which reports that there are two reasons why the carmaker could delocalise: first and foremost, "management’s exasperation with union demands for annual bonuses of 700 lei (175 euros) and an extra of 500 lei (125 euros) per month;" and secondly, the poor state of Romanian road system, which has made it expensive to export cars from the country. Hourly rates of around five euros per hour that Renault could expect to pay in Tangier are considerably less than the 8 euros per hour it currently pays in Romania. However, the Bucharest daily notes that the plant in Mioveni was nonetheless responsible for 2.5 billion euros in exports in 2010, or 7% of Romania’s export revenue. Gândul also points out that Dacia currently employes 150,000 people in Romania, of whom 20,000 work at Mioveni.