Dacia suspends production due to the global semiconductor crisis

by Romanian Reporter - Monday, February 8, 2021 11:12 AM

Dacia suspends production due to the global semiconductor crisis

The French carmaker Groupe Renault announced last Friday that the production of cars will be suspended during this week at several factories, due to a worldwide shortage of semiconductors. The affected plants are one from France, another one from Morocco, and Dacia's plant from Mioveni, Romania.

According to Raluca Turcan, the minister of Labor and Social Protection, the suspension of production will affect 50-60% of the overall factory activities and about 8.000 workers.

In this context, she declared that the government will accelerate the implementation of several provisions to the labor laws regarding the flexibility of the work reduction in cases such as Dacia's, with the goal of helping the companies keep the jobs.

Some of the amendments mentioned by Turcan:

  • The work schedule can be modified as often as the economic environment will require, but the employer must provide justification for the change every time it happens
  • The communication to the employee will be done at least 24 hours before the modification of the work schedule, compared to 5 days in case of normal circumstances, if the schedule is changed due to an increase in the company's activity or if there is a need to replace an employee who cannot perform the activities according to the work schedule
  • The work time could be reduced up to 80% of daily, weekly, or monthly working time, compared to the current limitation of up to 50%.

Assembly lines shutting down worldwide due to chips shortages

The COVID-19 pandemic led to an increase in demand for semiconductors, utilized in various electronic equipment, such as laptops or phones, thus the semiconductors are struggling to fulfill the orders. Additionally, some Chinese manufacturers are affected by the U.S sanctions imposed by the former Trump administration.

The semiconductors affected other carmakers as well. Also last Friday, Stellantis, the new car manufacturer formed after the merger of French PSA and Italian Fiat Chrysler, decided to suspend the production at the Eisenach (Germany) factory, of Opel cars, and in Zaragoza (Spain), of Citroen and Opel cars.

General Motors, Ford, Toyota Motor Corp, Honda Motor, and Volkswagen are all facing a shortage of chips used in engine management and driver-assistance systems, which mainly come from Asia and especially Taiwan, according to Reuters.

Photo: Dacia / Facebook

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