The industrial relations troubles at Dacia in Romania could threaten Renault’s 2008 sales outlook, according to Les Echos.
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The report said that the strike over pay is crippling output at Dacia, which is scheduled to produce 360,000 vehicles this year.
The newspaper said that Carlos Ghosn had vowed to increase the group’s worldwide sales by at least 10% in 2008 and another 10% in 2009. In order to achieve this, the company relies on good sales of the Logan model which is produced in Romania.
According to reports in the French media, this is the most serious conflict between Dacia’s management and the employees since Renault acquired the Romanian company in 1999.
Romanian trade unionists have complained that wages at Dacia are low given the productivity of the workforce and the profit that each employee generates.
More generally, wages are rising strongly in Romania as its economy attracts more inward investment attracted to its low-costs and EU-member status.
