Dacia at the Crossroads: Production Reduction at Mioveni and the Volatile Context of the European Auto Market

The Dacia plant in Mioveni, a strategic pillar of the Romanian economy and the Renault Group, is facing the prospect of a significant reduction in production volume starting in 2026. Although the decision has not yet been officially confirmed by the company's management, the intention communicated to the Dacia Car Union (SAD) - to reduce production by up to 165 vehicles per day - raises major question marks regarding the future of the factory, its employees and the European automotive industry in general.

The Context of the Decision: A Slowing Economy and the European Market Under Pressure

This potential reduction, which would equate to a drop of over 10% in current daily production (up to 1,390 units), is not an isolated event, but a reaction to an increasingly difficult economic and sales context at European level:

1.     Declining Demand for New Cars in Europe: Data on new car registrations in the European Union indicate a volatile market. Although Groupe Renault recorded a slight increase in the first half of 2025 (+5.4%), major markets such as France, Germany and Italy recorded decreases. Moreover, Romania recorded a strong contraction of the new car market (-22.4% in H1 2025, according to ACAROM), marking the weakest performance in the Central and Eastern Europe region.
2.     Dacia Sales Volatility: Despite model success, such as Sandero (the best-selling passenger car in Europe) and Duster (the leader in SUVs sold to individuals), the brand faces fluctuations. For example, in January 2025, Dacia recorded a 5.2% drop in registrations in Europe. The sales decline is partly attributed to the contraction of the retail market and local factors, such as the postponement of the Rabla program in Romania.
3.     Electric Vehicle (EV) Transition Pressure: Although Dacia has seen an increase in sales of electrified models (Spring, hybrid versions of Jogger and Duster), the European automotive market is in the midst of a major transformation. Manufacturers are facing high costs of adapting to new regulations (such as the Euro 7 standard coming into force in November 2026) and increasing competition from Chinese brands. Even though Dacia has a strong position in the affordable car segment, any economic or regulatory uncertainty quickly translates into adjustments to production capacity.

Union Reaction and Social Impact

The announcement sparked a strong reaction from the Dacia Car Union (SAD). Union leader Viorel Ungureanu called the intention "unacceptable", given the major social impact:

    "Management has informed us... that they intend to reduce vehicle production starting in January. This is an impact of 165 vehicles per day, which will lead to a reduction in staff of around 900 people."

Such a reduction would directly affect temporary employees, but could also lead to layoffs for those with permanent contracts, significantly destabilizing the community in Argeș and the local economy that depends heavily on the plant's activity. The negotiations for the new collective labor agreement, within the framework of which the communication was made, thus become crucial for finding alternative solutions to the massive job losses.

The Future: Flexibility vs. Stability

The situation in Mioveni reflects the dilemma facing the entire automotive industry: flexibility in the face of market fluctuations versus job stability. In recent years, the Dacia plant has already faced temporary production interruptions, mainly due to the semiconductor crisis.

This time, however, the cause seems to be structural – weaker European demand. As a result, Dacia and the Renault Group are forced to adjust their industrial plans to maintain competitiveness. It remains to be seen whether the dialogue with the union will generate alternative solutions, such as reduced working hours or reconversion programs, to avoid such a large-scale social impact.