The head of Dacia Romania warns that the automotive industry risks losing 25% of its activity due to expensive energy and a lack of competitiveness

Mihai Bordeanu, head of Dacia, warned during a debate organized by the Concordia Confederation that Romania is losing its competitiveness in the automotive industry amid rising energy costs. He argued that energy prices have doubled compared with the pandemic period, and manufacturers may decide to move investments and production to other countries.

The automotive industry accounts for one third of Romania’s exports, contributes 14% to GDP, and directly and indirectly supports approximately 200,000 jobs. Romania ranks sixth in Europe in automobile production, but high costs are affecting both factories and suppliers, he said.

Bordeanu said that Romania has already lost two important projects: the new Dacia Spring model, which will be produced in Slovenia, and the Dacia Striker model, intended for production in Turkey. He warned that the automotive industry could lose 25% of its activity next year, including turnover and jobs, if measures are not taken quickly.

The head of Dacia called for a plan for competitive energy, greater flexibility in the labor market, infrastructure development, and the relaunch of the vehicle fleet renewal program. For his part, Ondrej Safar, head of CEZ Romania, stressed that Romania needs investments to turn renewable energy and Black Sea gas into economic advantages.