Dacia could transfer production in Morocco, due to pay dispute in Romania

Article by Christian Andrei, on April 12, 2013

If a pay dispute in Romania worsens, Renault's Dacia unit could transfer production to less expensive sites in Morocco. To pressure the company to approve a 40% increase in pay, the workers at Dacia's assembly line in Pitesti (117 km west of Bucharest) stopped working for two days last month. The company responded to its workers’ demand with an offer of only a 9% raise.

Automobile Dacia Vice-President Constantin Stroe said that if its workers insist on making “unrealistic demands” and if no mutually beneficial resolution is reached, it’s likely that a significant aspect of production will be moved to Morocco. The automaker posted losses of 20 million euro ($26.1 million) from the strike last month.

Renault’s Dacia unit is the biggest exporter in Romania, making up about 3% of the gross domestic product. About 90% of what Dacia produces in this country is exported. Last year, it sold around 360,000 cars around the world, standing for a 4.8% increase from 2011. At Dacia, the average monthly pretax wage was 3,965 lei ($1,200) in 2012 compared with a national average of 2,100 lei.

Stroe said that in Morocco, a worker earns just 54% of the salary of a Romanian employee. The trade unions are expected to announce additional action plans on Thursday. Industry organization ACEA said that in February, Dacia sales in EU and EFTA countries increased by 15.4% to 20,423 units. Meanwhile, Renault sales declined by 14.8% to 58,423 units. In the first two months, Dacia’s deliveries rose by 11.7% to 41,043, while Renault sales dropped by 12.7% to 115,289 units.

By having not only the capacity to accommodate five adults but to also deliver the best comfort, the New Logan cements its reputation as truly a family car. Knee room for passengers is at 178 mm with boot space, seats up, at 510 cubic dm. These figures show that it is clearly unmatched for its class. As it is the least expensive car to be sold in the European market, it gives the best value for money when it comes to space.

Though dependent on the trim level, the new version will now offer a 60/40 split for its rear bench. With the New Logan, plus the New Sandero and the New Sandero Stepway, it is clear that Dacia is coming with a style that is more assertive and aimed at the upmarket.

Under a new design language, Dacia wanted to highlight both strength and quality. This is why the three redesigned models have similar looks on its front end which appears as if it is spreading out starting in the middle with the Dacia logo. The grille and the headline combine to give an appearance that is more expressive. Looking at its profile, the proportions of the glossy surfaces to the body help highlight its feel of sturdiness. This is enhanced further by the sculpted waist line and the flanks and wheel arches seen on each of the models.

Under the new design language, the New Logan has its exterior having a more dynamic design with the front having a flowing shape. As mentioned earlier, this new style can be seen on the headlights and grille, which is common for the three new models. Its rear end also helps highlight even further its robust quality especially with the new lights and design which displays the space offered by the model. By having a style upgrade, the New Logan gets that pleasant appearance with an added dose of elegance. The interior is just as appealing.

Depending on the model and the actual version, each of the three new models will have a dashboard in either dark carbon or two-tone. The dashboard itself will have the most modern instrumentation with dials surrounded in chrome and the advanced functional controls.

While the handle label on the gear stick, logo on the steering wheel, and the air vent surrounds will have a chrome finish, it will depend as well on the trim. In the same way the central fascia will be emphasized with a color wheel trim embellisher. It will however match the handles on the door and the design strip placed on the steering wheel. Improving the visual quality further is the excellent use of flusher fit and materials.

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