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Romanian Carmaker Dacia Halts Prod Again For Two Weeks

Romania’s Automobile Dacia, the local unit of France’s Renault, halted production again for two weeks, as of Monday, Jan 26, until Feb 8, citing steep decrease in auto markets.
Romanian Carmaker Dacia Halts Prod Again For Two Weeks
26 ian. 2009, 10:05, English

Employees will be put on technical unemployment and will receive 85% of their gross wages, according to Ion Iordache, the vice-president of the Dacia union.

"The new vehicles market in Romania is suffocated by used car imports. In December 2008, the imported used cars market reached 54,712 units, up 471% from December 2007; in 2008, the local market accounted for 300,891 imported used cars. In fact, as of November 2008, three used cars were registered for each new car sold in Romania," Iordache said.

Dacia resumed activity mid-January after a one-month production halt, also due to declining demand.

The carmaker said the decline in the market is due to the effects of the financial crisis, which lowered people’s access to loans, and because of massive imports of second hand cars.

After a 30% decline registered in October 2008 compared to October 2007, new car sales decreased 55% in November compared to November 2007 and 53% in December compared to December 2007, the carmaker added.

Dacia also plans to halt production in February or March if demand stays low.