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[BUSINESS] · Romania, Slovenia, Türkiye, EU · 13 sources

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Dacia executives warn of competitiveness risks and rising costs in Europe

Dacia executives are warning of significant challenges facing the European automotive industry, specifically regarding competitiveness and rising costs. Mihai Bordeanu, Managing Director for Dacia South Eastern Europe, cautioned that Romania risks losing 20% to 25% of its automotive industry's turnover, employees, and production by next year if competitiveness issues are not addressed. He noted that Romania has already lost production opportunities, with a new electric Dacia model being produced in Slovenia and the Dacia Striker model slated for manufacturing in Turkey.

Bordeanu highlighted that doubled energy prices in Romania are severely impacting both manufacturers and component suppliers. The automotive sector currently accounts for 14% of Romania's GDP and supports approximately 200,000 jobs.

Dacia CEO Katrin Adt emphasized that the European car market has failed to recover to pre-pandemic levels, noting a loss of approximately three million vehicle sales since 2019. Adt identified strict EU regulations regarding emissions and safety as a primary driver of rising vehicle prices. She revealed that roughly 25% of Dacia's R&D budget and engineering resources are dedicated to regulatory compliance, with the company having already implemented 100 regulations and facing 107 more by the end of the decade. Consequently, Dacia is calling on the European Commission to freeze new regulations for small cars to ensure continued affordability.

Entities

Dacia · European Commission · European Union · Katrin Adt · Mihai Bordeanu · Renault Group

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