French Investment Loss: Patience Waning?

by Archynetys Economy Desk

On October 26, 2023, the parliament voted Law no. 296 which introduced IMCA – the minimum turnover tax – from January 1, 2024. Not two months later, in December 2023, the French publication L’Argus announced Renault‘s plan to produce future Dacia compact models in Bursa, Turkey. Yesterday, François Provost, CEO of Renault Group, confirmed: C-Neo, the family station wagon with which Dacia attacks the C segment in Europe, will be manufactured in Turkey, not in Mioveni.

From 2023 onwards, Romania has put the most expensive energy in Europe on the investors’ table, a game of black and white with IMCA – yes, yes, no, we are removing it, but it still applies in 2026, although the business environment has been repeating for three years that it is a deeply wrong decision – and the technical recession, with the last two quarters of 2025 in the red, confirms these warnings. Add to that contradictory decisions, permanent uncertainty, political squabbles, road infrastructure that develops but very late, a small market of 156,000 new cars and a Rabla program that changes from day to day. On the other side, Turkey grew last year to almost 1.37 million units sold, a historical record.

If in 2019 we are talking about increasing the capacity of the Mioveni plant from 350,000 to 400,000 units, in 2026 we are talking about new voluntary departures of employees and volumes that stabilize around 300,000, with the help of Duster and Bigster.

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