Renault CEO urges Dacia plant to cut production costs by up to 30% to stay competitive
Renault Group chief François Provost warned that the Mioveni plant must slash production costs by at least 20%, ideally 30%, to remain viable within the group.
Renault Group CEO François Provost told Profit.ro that the Dacia plant at Mioveni must reduce its per-car production cost by a minimum of 20%, with 30% being the ideal goal, to regain competitiveness inside the group. He clarified that the cuts should not involve lowering employee salaries, but rather require a durable labor pact and more flexible wage growth. Provost stressed that the same efficiency drive must extend to the local supplier network and cited similar agreements already in place at other European Renault sites.
He also urged Romanian authorities to address the country’s high electricity prices to support the industry. The CEO plans to return to Romania in the coming months to assess progress and discuss the plant’s future.
Why it matters
The plant’s survival affects thousands of jobs and Romania’s position in the European automotive market.
In this story
