No.1 Romanian car maker Dacia shuts down door from Nov.20 to Dec.7 on market hit by credit crunchPublish date: 11-11-2008
The biggest car maker in Romania, Dacia, announced it will close the factory from November 20 to December 7, paying 85 percent of salaries to employees, in the background of the global financial crisis which thundered the car market too.
Car making in Romania fell 30 percent in October year-on-year after collapsing all over Europe. Spannish production lost an annual 40 percent and Germany witnessed an 8 percent fall in car making and selling.
Dacia, controlled by France's Renault, despite slight increase in exports this fall, thought it prudent to seize production for a while until the turmoil cools.
Selling of new cars shrank 30 percent in October this year over the similar month last year. Dacia chews on a 28 percent market slice.
The car market slump stems from the slowdown in lending and from the invasion at full speed of second-hand cars in Romania, after first-time registration tax was lifted, according to a release from Dacia.
The plant was closed on October 30 and 31 and will also shut down on November 13 and 14 to allow for the fabrication program to adapt to the demand which has recently lowered. However, certain sectors like the CKD center, the spare parts production and the vehicles expeditions will continue work.
In the first nine months of the year Dacia sold 194,165 vehicles, 17 percent more than the similar period last year.
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