Renault's Dacia Ceases Production From Nov. 20 to Dec. 7

After sales of most American carmakers were massively reduced by the much-debated economic crisis, the global recession is now heading to Europe where local car manufacturer have already announced a couple of measures supposed to prevent or minimize consequences. Renault's Dacia today announced the company will cease production from November 20 to December 7 as a result of reduced demand on both export and domestic markets, but also due to the continuously increasing interest for used cars.

Despite the remarkable success it had on several export markets, Dacia is forced to cease the production, the Romanian company said in a press statement, pointing to the global economic crisis which reduced sales of new cars in most markets. Interest in new cars fell 30 percent in Romania in October 2008, 40 percent in Spain and 23 percent in Great Britain.

“Confronted to a fall in car markets, both on the external and on its local market – Romania, and to a risk of accumulating stocks, Dacia has decided to cease production from 20 November to 7 December 2008. The CKD Centre is the only entity that will operate according to schedule,” Dacia said in the press statement.

Even though the Romanian carmaker hasn't yet announced job cuts, there's confirmation that workers only receive 85 percent of their total gross salary during the aforementioned period.

France and Germany are Dacia's best export markets, with 35,329 and 21,164 units delivered in the first ten months of this year. Ukraine comes third with a total of 12,082 units followed by Algeria with 10,946 vehicles. In addition, Dacia began exporting cars to Greece and Portugal where it has already delivered 327 and 309 units, respectively.