French group Renault will suspend the capacity increase project at the Dacia plant in Romania, as part of a bigger plan to cut fixed costs by more than EUR 2 billion over the next three years. The group presented the draft plan on Friday morning, March 29.

“The difficulties encountered by the group, the major crisis facing the automotive industry, and the urgency of the ecological transition are all imperatives that are driving the company to accelerate its transformation,” Renault said in its presentation.

The plan is based on a more efficient approach to operational activities and rigorous management of resources.

The group also considers workforce adjustments to return to profitable and sustainable growth. “This workforce adjustment project would be based on retraining measures, internal mobility, and voluntary departures. It would be spread over three years and would concern nearly 4,600 posts in France, to which would be added the reduction of more than 10,000 other positions in the rest of the world,” the group said in a press release.

In 2019, Renault started an ample investment program at its plant in Mioveni, Romania, where it produces Dacia models. The goal was to increase the factory’s production from 350,000 to over 400,000 units per year. The investments were estimated at EUR 100 million.

Renault has over 14,000 employees at the industrial platform in Mioveni.

editor@romania-insider.com

(Photo source: gruprenault.ro)