Saturday, April 25, 2009

Romanian carmaker Dacia to boost production

BUCHAREST, April 24 (Reuters) - Romanian carmaker Dacia, owned by France's Renault (RENA.PA), will boost daily output by 12 percent and hire new staff from mid-June as state incentives in several EU states have revived demand.

Countries like Germany, Italy and Spain have pushed incentive programmes in recent months to help their ailing car industries as recession in the euro zone has hurt sales.

Many buyers have been seeking bargains abroad, benefiting Dacia, which exports the 6,000 euro ($7,900) Logan model, and Poland, where the local currency's retreat against the euro since last summer has made purchases up to a third cheaper in euro terms.

Dacia said in a statement on Friday its average daily production will rise to 1,340 cars from 1,200 from June 15, bringing it closer to last year's peak of 1,360 vehicles.

The firm also said it will hire roughly 500 people and extend the work contracts for another 400.

The downturn in the West has hit Eastern Europe's car exports, forcing plants like Dacia to temporary shut down production or Suzuki (7269.T) in Hungary to lay off over 1,000 workers. (Reporting by Luiza Ilie; Editing by Dan Lalor) ($1 = 0.7592 euro)

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