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March 24, 2020

Romania parts producers stop production

Around 400 automotive componentĀ suppliers in Romania have stopped output, leaving 230,000 workers unemployed, the Romanian Association of Automobile Manufacturers (ACAROM) told Ziarul Financiar.

By Olly Wehring

Around 400 automotive component suppliers in Romania have stopped output, leaving 230,000 workers unemployed, the Romanian Association of Automobile Manufacturers (ACAROM) told Ziarul Financiar.

The two major car producers in Romania, Dacia (18,000 employees) and Ford (6,300) had already announced they would suspend production at least until 5 April, romania-insider.com reported.

Pirelli (4,000 workers) has also stopped Romanian output.

"In no more than five days all car parts producers will [have stopped] their activity because of the coronavirus epidemic. The auto industry needs support right now to get past this period," said Adrian Sandu, general secretary of ACAROM.

The government has promised to pay from public funds benefits (75% of gross wage) to those sent into what is called 'technical unemployment' locally.

Calculated for 75% of the minimum gross wage (RON2,230), the support provided by the government over a two month period, assuming all car parts workers will be placed in technical unemployment, would cost the government some EUR160m, romania-insider.com said.

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