BUCHAREST, Romania (AP) -- French-Romanian carmaker Dacia temporarily halted production on Thursday after the financial crisis led to a drop in car sales.
The production halt at the factory in Mioveni, some 60 miles (100 kilometers) northwest of Bucharest, will run until Dec. 7. During that time, its 14,400 workers will get 85 percent of their salaries.
The company said last week that the world economic crisis had led to a 30 percent drop in cars sales in October compared to a year ago.
Prime Minister Calin Popescu Tariceanu said Wednesday the Romanian government will suspend a tax on new cars to protect jobs in the auto industry, a measure he wants to run until the end of 2009.
Subansamble Auto, a company that supplies parts to Dacia, said Wednesday that it would lay off 800 of its 3,500 workers.
Dacia also said its market shrank also because of "the invasion of imported secondhand cars" and warned that jobs in the car industry are in danger.
Renault SA has invested euro1 billion ($1.26 billion) in Dacia since buying it in 1998.
