Romanian car parts producers to shut down operations within five days

Most if not all of the more than 400 suppliers of automotive components in Romania will stop their activity and will send over 230,000 employees in technical unemployment within the next few days, according to the data of the Romanian Association of Automobile Manufacturers (ACAROM), quoted by Ziarul Financiar.

The two major car producers in Romania, Dacia (18,000 employees) and Ford (6,300 employees) have already announced that they will suspend production at least until April 5. Another large company in the sector that has announced a similar decision is tire producer Pirelli (4,000 employees).

“In no more than five days all car parts producers will stop their activity because of the coronavirus epidemic. The auto industry needs support right now to get past this period,” said Adrian Sandu, the general secretary of ACAROM.

The Government promised to pay from the public budget the benefits (75% of their gross wage) to those sent in technical unemployment. Calculated for 75% of the minimum gross wage (RON 2,230), the support provided by the Government over the two-month period assuming all the employees in the car parts industry will be sent in technical unemployment would cost the Government some EUR 160 million.

(Photo source: Facebook/Ford Romania)