Dacia: If sales do not rebound, we'll lay off 3,000 people

Francois Fourmont, general manager of Automobile Dacia, says the company is likely to cut down the plant's production from three to two shifts in 2009, which would entail 3,000 layoffs. Crisis measures are necessary in the entire car industry in the current economic context, marked by technical unemployment for more than a third of the sector's employees.

Automobile Dacia, for now the only national carmaker, has already come up with strategies, though cautious ones, for the first quarter of 2009. A first move for January and February is adding to the number of days during which production will be halted, as there are no sales peaks for the car industry in the first two months. "If the received orders are not enough, we'll have to adjust production through technical unemployment days and see whether the market rebounds before deciding any further moves," stated Fourmont.

After technical unemployment, possible partial layoffs depending on economic conditions and renouncing 100m-euro investments, next come wage package reductions. "(...) We haven't discussed about 2009 wages. Talks with unions will start next year," Fourmont said. The third line of action, besides technical unemployment and production control, is inventory reduction as a result of the shrinking demand.

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