Monday, December 8, 2008

Renault Restarts Romania Car Production

Romanian carmaker Dacia, most of which is owned by French giant Renault, has restarted production at its main plant after a temporary stoppage amid the global financial crisis. The production was halted on November 20, with Dacia's 14,400 workers getting 85 percent of their salaries during that time.

Last month, Romania’s Government decided to suspend a registration tax on new cars in order to help keep jobs in the local automotive industry. It further decided on December 4 to triple a registration tax for second-hand cars to boost new car sales and help the country's ailing auto industry.

Romania is one of the main car producers in Eastern Europe with French Renault producing the Dacia model. Dacia sold more than 230,000 cars last year in Romania and abroad.

Dacia sales dropped by around 30 percent in October compared to a year ago.

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