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This Automaker Says It's Not Firing Anyone, but Employees Get Over $27,000 if They Leave

A European automaker is offering its employees a lot of money if they choose to leave the workplace voluntarily. Some may even get more than $27,000. And that’s after taxes! The company promises nobody is going to be laid off – for now. Here are some reasons why this is happening.
Dacia Employee Working 6 photos
Dacia Factory WorkersDacia Factory WorkersDacia Factory WorkersDacia Factory WorkersDacia Factory in Romania
If you’re an avid autoevolution reader, then you surely know that we like to keep an eye on car brands that aren’t yet in the U.S., Canada, or Australia. People in the UK, however, like this particular brand’s cars and they buy them in large numbers! That’s why you should know too about what’s going on with this low-cost manufacturer. It might signal a point of no return.

You might’ve guessed by now, but the car company in question is Dacia. This brand builds Europe’s cheapest all-electric car (granted, it’s a pretty small vehicle) and made a name for itself after years of allowing a lot of lower-middle-class families to own a brand-new car or a compact SUV.

Its cars are made in multiple factories in Europe and Northern Africa. That’s thanks to Renault ownership, which is a French automaker. The marque’s original plant in Romania, however, is where the action is taking place. Dacia informed the employees working there that they can get a hefty incentive if they leave the company voluntarily. The documents were leaked on social media. More precisely, those who have been working there for at least 16 years can receive $27,400 for just quitting.

These net compensations are not the same for everyone. Those who worked at Dacia for less than 16 years, for example, will receive $22,100. The smallest payout a voluntarily leaving employee can get is $3,360, an amount available only for those that worked for the carmaker for the last two years. This is followed by a steep increase of $5,050 for those that spent more than 24 months with the company.

Even though it looks bad, considering people are still waiting for their cars in large numbers, Dacia assures everyone this is just a program meant to support Renault’s strategy for the future. They want to separate the internal combustion engine business from the all-electric one.

Disregarding the official reasoning for this situation, the reality may be that the Romanian plant is being left behind. The other factory where Dacia models are being made is situated in Morocco. Renault started a hiring process there and is already getting new employees. That’s mostly thanks to lower costs of manufacturing and labor, but also because the African factory is connected to usable highways. It's also rumored that out of the 12,855 people currently employed at the Romanian production site, only 800 will still have a job in two years' time.

The decision might also be a consequence of leaving Russia. Renault was forced to accept a major loss and sell its stake in the Eastern country for just one Rouble ($0.017).

Dacia remains a highly profitable investment for the French manufacturer.


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