Dacia warns of production decline and competitiveness issues at Mioveni plant

Dacia leadership has issued urgent warnings regarding the competitiveness and future of the Mioveni plant in Romania. Mihai Bordeanu, Head of Country for Renault Group in Romania and Managing Director of Dacia South East Europe, stated that the factory is facing its most difficult period since Renault took over in 1999.

Key challenges include high energy costs—noting that Mioveni pays approximately 180 euros/MWh compared to 70-80 euros/MWh in Spain—and high taxes. Consequently, production is expected to decline by double digits in 2026 due to a shift in the European market toward electric vehicles, while Dacia’s traditional combustion engine segment remains stagnant. This decline has already contributed to approximately 1,700 employees leaving the company since 2025, with further layoffs possible.

Furthermore, the future of major models like the Duster and Bigster at the Mioveni site remains unconfirmed, as Renault Group considers alternative locations such as Morocco, Turkey, Spain, or Slovenia. While Dacia is pivoting toward electrification with plans for four new electric models by 2030, the company is currently prioritizing the development of the Sandero and the Bigster to maintain its market presence.