Romania's carmaker Dacia suspends production for two days on weak orders

“We confirm the stoppage of production on October 9 and 12,” Dacia representatives told Profit.ro.

According to union representatives, the production halt is related to the volume of orders received by the plant, following an earlier slowdown in production after the summer holiday period.

The plant is currently producing just over 1,000 vehicles per day, according to Profit.ro, compared with maximum capacity of around 1,300 vehicles per day. The lower production rate has already prompted the factory to adjust its shift structure.

“The shutdown is another issue, and it comes from the fact that the number of orders this month and the production mix are lower. It took two days of shutdown to adjust production to the order book,” Viorel Ungureanu, leader of the Dacia Car Union, told Profit.ro.

“For now, we have no visibility for the future, but we hope that another shutdown will not be necessary. We discuss with management frequently, and we do not believe that there will be another shutdown this year,” he added.

Dacia’s suppliers curtail operations in response.

Dacia’s lower production has also affected suppliers. Employees at Horse Romania’s gearbox and aluminium manufacturing departments, as well as support, quality and logistics staff, interrupted their activity on September 24, 25 and 28 because of lower orders from its main client, Automobile Dacia, according to information obtained by Profit.ro.

The employees were sent home and received 85% of their normal salary, together with meal vouchers, for the days they did not work. Maintenance and repair work was carried out around the gearbox assembly lines.

The rest of the plant continued to operate normally, with the engine department maintaining its usual production level and supplying engines to all Dacia plants.

Dacia’s vehicle production has fallen by more than 14% this year, with almost 160,000 vehicles assembled in the first eight months, according to Profit.ro. Dacia Romania head Mihai Bordeanu confirmed during the launch of the new-generation Dacia Spring that the plant was heading for a double-digit production decline this year, citing the unfavourable conditions in the automotive market.