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 QUALITY MANAGEMENT

Value Chain Management. The Case of Automobile Dacia

Mihaela Gabriela BELU1, Dorel Mihai PARASCHIV2, Ioan POPA3

1Professor,PhD, The Bucharest University of Economic Studies, Bucharest, Romania; E-mail: belumihaela@gmail.com
2Corresponding author, Professor, PhD, The Bucharest University of Economic Studies, Bucharest, Romania;
E-mail: dorelpar@gmail.com
3Professor, PhD, The Bucharest University of Economic Studies, Bucharest, Romania; E-mail: ioan.popa.rei@gmail.com

Abstract

As a result of the globalization of economic activity and of the rapid development of information technology,
businesses have begun to develop and implement global networks to integrate sources of supply, production and
distribution of finished products. Thus, on the one hand, we witness a shift from local (national) or international value
chains to regional and global value chains; on the other hand, there was a shift from producer and consumer-
determined chains to integrated chains and further on to production and consumption networks.
This paper proposes a review of the evolution of value chains, from local to global, with a special focus on the
influence of two factors especially important to the definition of value chains, namely the market liberalization process
and technologic progress. If in the past logistics had a rather marginal influence on a company’s international
success, it has steadily become one of the major factors that contribute to competitiveness assurance on a global
scale.
Our objective is to highlight recent tendencies in value chain management, by analyzing the logistic strategy and
experience of the main player in the Romanian automobile market, the company Automobile Dacia. Thus, this paper
may represent an important source of information for the managers of companies operating in the automotive
industry.

Keywords: value chain; value chain management; competitiveness; Dacia; Renault, Romania.

1. Introduction value chains; finally, another approach is the interpretation from

the theoretical perspective of the global system which has led to
Globalization does not call into question national economies the development of models of global production systems (Popa,
as a system of organizing production, exchange or financial I., Belu, M. 2018).
relations in a determined economic space, but it represents a The concept of value chain was defined by Porter (1985) as
challenge to each and every country’s capacity to ensure the the set of activities undertaken by a company in order to conceive,
valorization of its material, human and information resources produce, market/commercialize and ensure the maintenance of
with a view to achieving economic performance in the context of its product. In this presentation, there are two categories of
a global business environment (Popa, 1999). activities: a) primary, namely product creation and delivery –
Logistics is a part of the value chain and it refers to those (inbound logistics), processing (operations), delivery (outbound
activities that aim at planning, implementing and monitoring the logistics), marketing and sales, service, and secondary – pur-
efficient delivery of goods, their storage and return, as well as chasing, human resource management, technological develop-
ensuring the information flow between the point of expedition ment and infrastructure; b) maintenance activities (support),
and that of destination. The recent development of logistics is those that support/ make possible the valorization of the re-
marked by global business trends, by the shift from international sources engaged in the primary activities. A company can gain
business strategies to newer, global approaches. competitive advantages over other firms by finding ways of cost
Global logistics represents that management system that reduction or by creating new value in all its activities (superior
controls the flow of raw materials entering/being processed/ design, more efficient production, better service etc.).
being delivered on markets so that the company’s objectives According to Hill’s definition (2011), the value chain is
can be achieved at a minimum cost. indicative of the total value of a firm, and it consists of its value
creative activities, plus the profit margin the difference between
the total value created – the obtained price – and the total costs
2. Value Chain and Competitiveness required to support these value creative activities) Value is the
measure of a firm’s ability to sell what it produces at a price
The theoretical approach to internationalization has been higher than the involved costs. A value chain is the set of
achieved, in line with neoclassical economic theory, with the activities that produce value for the customers and profit for the
model of the value chain, which allows for an interpretation of company. The value chain can also be seen as a framework for
internationalization in terms of competitive advantages; a re- the identification of a company’s competitive advantages inter-
search-based approach from a managerial perspective has led nationally.
to the international expansion of the concept of logistic chain The analysis of the value chain takes into account all the
management and its convergence towards the analysis of global stages of the economic process, from raw materials to the final

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consumer. The goal is to achieve maximum value with minimum different value creation points in order to maximize the added
costs. This is an operational approach, in which each phase of value for the client.
the economic process is considered able to create value, insofar The supply chain is a component of the supply network in
as it allows the sale – at each and every stage – at a price higher which raw materials, intermediate products and finished goods
than the involved costs, without considering the value source. are made as products exclusively via a chain of interconnected
The value chain model has been developed gradually, by the processes, where each process provides input to the subse-
convergence of several theoretical sources in the field of quent one.
business and economics, as well as by capitalizing on the Both the supply chain and the supply network presuppose a
practical management and marketing experience gained inside flow of materials and information, as they make the connection
organizations/firms. The basic idea is the need to manage a between firms/organizations to serve the final customer. How-
chain of activities that go beyond the company (and even the ever, the network represents a more complex structure, in which
country or the region) with a view to efficiently doing business organizations may be interconnected (cross-linked), with reci-
and achieving business performance. procal exchange between them, while the chain is a simple,
sequential, unidirectional set of connections (Harland, C.,
2.1. Global Value Chain Lamming, R.C., Zheng, J., Johnsen, T., 2001). The supply chain
presupposes the movement of material flows from the raw
In the 1990s, the concept of global value chain was material source to the finished product. The supply network
introduced in the field of worldwide industrial development emphasizes the connections established between organizations
analysis (Gereffi, G., Korzeniewicz, M., 1994; Daniels, J., and the way in which materials and information circulate within
Radebaugh, L., Sullivan, D. 2009). The analysis of this concept this system. The value chain emphasizes the way in which value
was later integrated in the development policy of the World is created within the supply chain/ network.
Bank, or the United Nations Conference on Trade and De- The emergence of global value chains represented a cata-
velopment and the Organization for Economic Cooperation and lytic factor to the change of the international environment of
Development. investment and trade, with major consequences both on states’
Nevertheless, theoretical approaches, namely academic politics and on companies’ business strategies (Gurria, 2012).
research, concentrates on the interaction between information Due to global value chains the degree of economic integration in
and processes, in order to rationalize the various activities within the global environment increased significantly, while multina-
the supply chain, in order to obtain pre-determined results or tional organizations came to play an increasingly important part
optimal solutions; different, applicative approaches, namely in the domain of international business. Similarly, there were
management practice, aims at conceiving and implementing changes in the configuration of economic activity on a global
efficient strategic solutions adequate to the specific conditions of scale, and new types of production networks emerged.
the sector and business environment (Tang, C.S., Teo, C-P., On the one hand, the development of strategic alliances and
Wei, K.-K., 2008). business partnerships led to the identification of new business
There are various approaches to the value chain concept. A success factors, improving production and marketing techniques
first approach is from the perspective of the producer, which and management practices. On the other hand, technological
gave rise to the concept of supply chain. This presupposes, on changes, especially the drastic reduction of communication costs
the one hand, the activities that unfold post-production – (an important component of transaction costs) triggered
referred to as logistic operations, which also generated the changes in the development and management, or co-ordination,
name of logistic chain, and on the other, pre-production of value chains/networks.
operations, namely supply, hence the name of supply chain. The Global value chains/networks also generate the deepening
concept of Supply Chain Management (SCM), originates in the of global interdependencies, increasing the role of multinationals
domain of strategic management. It represents a fundamentally in the internationalization of business. In response, governments
different understanding of a business organization, based on the began to grant tax incentives and introduced new R&D
idea of a close interdependence of the various links in the supply incentives, to enhance national competitiveness in the new
and sales channels and on the necessity of partnerships and economic and geopolitical climate. In the 21st century, these
teamwork in a value chain. trends in global value chain creation and restructuring of the
The other approach is from the client’s perspective, i.e. global business environment have intensified.
market focused. Demand chain management (DCM) is the ma- Gereffi and Korzeniewicz (1994) defined global commodity
nagement of supplier-customer relationships with a view to chains (GCC), analyzed the structure of supply chains’ internal
delivering optimal value to customers with the lowest cost of the governance, and highlighted the role of large firms in the
overall demand chain. The marketing approach in terms of DCM creation of global production and supply networks. Thus, a
is a natural continuation in the evolution of the supply chain, this global trade chain is a network of work and production
time with the accent not on supply/producer, but on demand/ processes whose final outcome is the finished product. A Global
consumer. Production Network (GPN) is a recent adaptation of the GCC
A demand-driven supply network (DDSN) is a SCM dimen- concept. If the global trade chain was defined in the 1980s,
sion which presupposes the creation of supply chains in according to the realities of that period, the global production
response to signals from market demand. The driving force of chain corresponds to current economic developments. Global
DDSN is customer demand, a pull force, different from that of trade chains have developed since the 1980s, so that global
traditional SCM, which is a push force. In order to generate production chains represent a developed form of global trade
sustainable competitive advantages through DDSN, companies chains (Henderson, J. et al, 2002). According to the advocates
need to meet three conditions: the creation of common/shared of this approach, the global trade chain allows the focus on the
incentives, agility, and a rapid response to short-term change, creation and distribution of global value, as a result of a
adaptability in adjusting the configuration of the supply chain. multidimensional and multi-stage set of activities, rather than as
The third approach is an integrated one. A supply network is an exclusive result of industrialization.
the expression of an integrated approach, a model of time and Supply on a global scale is currently a central component of
space processes carried out in activity nodes and through distri- many firms’ business strategies, proving an essential factor in
bution links which add value for clients by product manufacturing ensuring their competitiveness and profitability. According to
and delivery. It comprises a company’s general business cycle, Waters, D. (2010), this orientation may be considered the most
in which all types of materials, those undergoing processing, as important tendency in the last few decades and an essential
well as finished products, are transformed and directed towards condition to corporate survival in the context of changing

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economic activity configuration on a global scale, with new types network, in the global computer value chain, a particular
of production networks emerging. computer sold by Dell shows a certain balance of power
A production network is given by the links established between Microsoft's software strategy, Intel's semiconductor
between firms belonging to a particular value chain, in view of strategy and Dell's assembly and marketing strategy.
the production of a particular product. Production networks In the context of network economies’ emergence, of the
become international when they are constituted in a bilateral or delocalization of activities and of the use of information
multilateral (regional) framework. Global production networks technology, many companies have developed ways of im-
develop in a global environment, their distribution of activities proving their production networks, each business partner
and coordination being carried out on a transnational basis, as specializing in some strategic activities, managing a network as
they involve several state economies. a whole in new ways, specific neither to the market model, nor
Within global production networks, lead firms manage the to the hierarchical structure model.
system of branches and affiliates with a view to developing and If we refer to corporate governance, namely the coordination
marketing products well-known on the market (for instance, of economic activity through non-market mechanisms, we can
automobiles, computers, mobile phones etc.). What distingui- speak of several types of value chains/networks. Hierarchical
shes lead firms from the other companies in the network and chains express the full internalization of the activities of vertically
gives them a dominant position and, in principle, higher integrated companies, a formula specific to international/global
profitability, is the fact that they control the access to resources intra-firm production networks. These are production networks
and core activities required in the respective production process, created within large companies, involving ownership relation-
namely: product design and development, international trade- ships between the parent company and its subsidiaries or third-
mark, access to the end consumer. party firms (affiliates) in which it has a minority participation,
With the emergence of global value chains, there has been located in different areas, around the world. This is the case of
a shift from the traditional approach, of producer-driven chains, multinational corporations constituted as vertically integrated
to a modern approach, of buyer-driven chains (Gereffi, G., firms, where production is outsourced to third countries, but
Korzeniewicz, M., 1994). control is still exercised by the parent company through
Producer value chains are the initial form of global networks ownership. In this case, the coordination and control of
that have reorganized the world-wide production system. In the production and related activities is internalized within the firm
case of manufacturer-driven chains, the technological (Olejnik, E., 2014).
capabilities of lead firms, namely large multinational production Quasi-hierarchical (or captive) chains include suppliers or
companies, play a central role and determine the competi- intermediary clients with a lower degree of competence, and
tiveness of the chain by coordinating (and controlling) the they are included in value chains managed by coordinating
activity of the network's affiliates (subsidiaries, affiliates, firms. Modular (or relational) governance requires sustained
suppliers). relationships between the coordinating firms and their suppliers
In producer-driven commodity chains, large, usually tran- and customers within the chain, band it presupposes a lower
snational, firms play a central role in coordinating production degree of chain governance, as the main partners have specific
networks, retaining control over R&D, product conception and skills and/or infrastructure, so they can operate independently of
innovation. the coordinating firm.
It is especially the case of intensive capital or technology Hernández and Pedersen (2017) conducted a study aiming
production, such as automotive, aviation, communication and to identify those activities specific to global value chains, the
information technology, semiconductors or electric cars decisions on its configuration (localization, governance,
industries (e.g.: Toyota, Samsung Group). In the context of coordination) and all the implications deriving from value chain
globalization, production is relocated to areas where companies configuration for company performance and capacity for
can benefit from cost advantages (labor, resources, advan- innovation.
tageous situation etc.), most often in countries with emerging or The substantiation of those strategies referring to the
developing economies, while the final products are destined for selection of a location for the activities specific to a global value
main market in the developed world (e.g.: Daimler Benz). chain, based on which multinational companies choose those
Customer-driven value chains are those in which the lead locations – for supply, production, research, or sales activities –
firms are the final buyers. These are, as a rule, large retailers, or to enable them to maximize profits, is an important step in the
those who market famous brands (e.g.: Carrefour, Levi), who process of setting up a global value chain. Factors such as
play a central role in restructuring global economic activities, by production costs and labor costs, demand on the target market,
decentralizing production networks in third countries – existing competitive environment, and the possibility of cluster
especially emerging markets – that become global suppliers, on formation are taken into account (Mayrhofer, U., Colovic, A,
the basis of quality standards and specifications imposed by the 2009).
lead companies. These are usually the characteristics of
intensive labor or consumer goods sectors, such as clothing, 2.2. Company Competitiveness
footwear, toys, consumer electronics, or agri-food. The capital,
technology, or competence requirements necessary to observe A company's value is determined by two coordinates: a) the
in order to enter the network are not as strict as in the previous ability to generate profit, in its turn determined by productivity
case, which makes it possible for companies from emerging (understood, in this approach, as cost reduction) and by the
economies or developing countries to adhere to such networks. ability of the company to create value (reflected in price
Production is carried out on a decentralized basis, each increase); b) the potential for profit growth by increasing sales
producer, as well as his suppliers, carrying out the production on existing markets and by entering new markets.
process according to their own circumstances, but observing the A value chain approach presupposes the analysis of all
basic requirements for the final product; the final product is to be business activities and it underlies any strategy adopted by the
marketed by the lead firms. firm with a view to ensuring competitiveness and profit growth
Multi-polar chains or networks – less frequent – are (own production or outsourcing, local or international supply/
characterized by several power centers in different areas of the distribution, etc.).
value chain. There is no dominant firm to ultimately control the Competitive advantage is determined either by a firm’s ability
production of the finished product and exercise control over the to produce a determined value for its customers, through more
essential activities within the chain (for example, Dell, Intell and efficient activities than its competitors (lower costs), or by
Microsoft): although each is a lead firm in its own production operating at costs similar to those of its competitors, while

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generating a higher value for its customers (differentiation). (national, continental, intercontinental) and “vertically” (local,
Similarly, a company can identify those elements of the value regional, global). International competitiveness is increasingly
chain that are not justified from the point of view of efficiency dependent on the supply chains established among firms and
(activities with relatively high costs), and consequently opt for on the possibilities of improving intercompany business
the outsourcing of the respective activities. networks in the global space.
International expansion means an increase in a company’s On the other hand, economic performance and international
capacity to produce and enhance profit, the company thus being competitiveness are conditioned by the material and human
able to create value by adopting either a cost-cutting strategy, or resources available to the company and they depend decisively
one of production differentiation, observing the value chain’s on how these resources are used in the local, national, regional,
functions (activities) according to the principle: operate each and global environment – in which the firm operates. A survey of
function in a context where the company can make the most of the 500 largest firms in the world shows that their
its competencies (i.e. where it achieves the highest efficiency competitiveness has increased during the period under review,
possible), in a multidimensional approach: local, regional, global. largely due to their capitalizing on the opportunities offered by
In the context of globalization, companies – especially the regional environment. The thesis that authentic development
multinationals – tend to develop global value chains by direct is essentially a phenomenon rooted in national soil and that it
investment and by opening subsidiaries abroad. To increase has to emerge from the aspirations of a national community
their efficiency and optimize their profits, they outsource (Dolgu, 1979) is not invalidated by last decades’ developments.
company’s activities – such as research, development, design,
assembly, component production, marketing, branding – to
different countries around the world, depending on where the 3. The Case of Automobile Dacia
most favorable conditions for such activities are. The analysis of
commercial and investment flows is therefore made in the 3.1. Romanian Automotive Industry
context of global value chains, a concept that defines the set of
activities required to place a good or service at the disposal of Romanian car industry had a turnover of over 40 billion lei in
the final consumer, from raw material supply to final production 2017, the main players being Automobile Dacia, Ford Craiova
and delivery (Cattaneo et al., 2010). and auto parts companies. The evolution of car sales on the
Business activity can no longer be limited to a determined domestic market, shown also in the figure below, shows a
local or regional environment; it takes place in a network of recovery, after the difficult period 2012-2014. In 2017, Romanian
economic and financial interdependencies, constituted in the auto market registered a 10% increase as compared to the
process of internationalization of economies, both “horizontally” previous year, with 156,527 units sold. (Dobre, S. 2018).

Figure 1.
The evolution of the
Romanian automotive
market (units)

Source:
http://www.apia.ro/

Last year, at European level, our country occupied the 10th Eastern Europe, it is necessary for us to start production and
place in the European Union, according to data provided by the invest in the industry 4.0 (Forbes, 2018).
European Automobile Manufacturers Association, and it was
described as the most dynamic car production center in Central 3.2. Automobile Dacia.
and Eastern Europe. Dacia Duster Value Chain Configuration
The automotive industry – automobile producers and com-
ponent manufacturing companies – dominate Romanian Dacia, the largest automotive manufacturer, is part of the
exports, as evinced by the 2017 context, when, of a total figure Renault group (has been a part of the group since September
of exports, of 62.6 billion Euro, 46.4% represented cars and car 1999), whose main activity is the production and sale of auto-
equipment. The top Romanian exporters are the automobile mobiles, automotive parts, machine tools and installations for
companies. Dacia Renault is the largest exporter, followed by the automotive industry. The company’s achievements have
Star Assembly – Sebeş gearbox factory, owned by Daimler also been reflected in its financial results, with a high turnover
(Hostiuc, C. 2018; Alecu, B. 2018). and profit over the past three years (see figure 2).
The main issues that the car industry must deal with are the Dacia models are sold in over 44 countries. Dacia cars are
following: poor infrastructure, lack of workforce, lack of an ade- appreciated for the fact that quality is sold at the best price
quate education system for the industry 4.0. The representative (smart buy) and due to the fact that they constantly respond to
of a large auto parts company has identified the challenges of customer expectations. The increase in turnover and market
the automotive industry, namely digitalization and electric cars. share in these 44 countries is the main objective of Automobile
Under these circumstances, in order for our country to remain a Dacia.
point of reference in the automotive industry in Central and Dacia Duster is an SUV built by Renault and Dacia, with a

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Figure 2.
Automobile Dacia – financial results

Source:
http://www.daciagroup.com/comercial/

Figure 3.
The value chain configuration
in the automotive industry

Source:
Schmid S., Grosche P.,
2008, p.12

first version launched in 2010 and re-launched in 2017. Dacia is used, and it is managed by Renault Technologie Roumanie.
Duster is a low-cost 4x4 model, which has been successful The production of the Duster model implied the creation of a line
since its launch phase. The factors responsible for Dacia specific to the product in the bodywork department, and a new
Duster’s success are: price (it is the cheapest car in the 4x4 assembly line was adapted for the new model in the general
category); design (it has classical design, specific to off-road assembly department.
vehicles); space (it is a compact car that offers plenty of space); The Duster production process is configured as a hub-and-
low maintenance costs (it is a budget car); safety (Euro NCAP spoke network (see Figure 4). The Mioveni plant makes engines
offered 3 stars out of 5 to Dacia Duster); consumption (6.5 l for and components; the constitutive components of a vehicle are
the smallest engine type). also assembled here (complete knock-down-CDK). The Duster
In setting up the value chain, Automobile Dacia represen- model is manufactured at the Mioveni plant, and it is associated
tatives have taken into account a number of factors such as the both to Dacia brand (for the Romanian market, Europe, Turkey,
general economic situation, the requirements of the automotive Africa and the Maghreb) and to Renault brand (for the markets
industry, the level of competition and the attractiveness of of the Ukraine, the Middle East and some African countries).
emerging markets (see Figure 3). The Duster model is also produced in other Renault-Nissan
Dacia Duster Production. Dacia Duster model was launched plants, namely:
in 2009 and the current model is the second generation. The
investments needed to complete the project at Mioveni plant
in South America, the Duster is produced at Brazil’s
were worth $ 290 million and the main objectives of the Curitiba plant – wherefrom it is distributed to markets such
manufacturer were the development and industrialization of the as Brazil, Argentina and Chile – and Colombian plant
plant. To produce this model, a special prototype assembly line Sofasa – for markets such as Mexico, Ecuador and Colombia;

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concern of Automobile Dacia has constantly been to ensure the
supply of automotive components for its models at the lowest
possible costs. The concentration of auto parts suppliers in
Romania has had the effect of reducing the logistical costs of
supply and therefore lowering costs. 54 local suppliers deliver
components for Dacia Duster, and most of them are located in
the area of Piteşti industrial park. Other suppliers are located in
Germany, France, Austria, the Czech Republic, Spain and
Poland.
Development. Dacia Duster is the result of the collaboration
between Renault Technologie Roumanie and Renault Losange.
The design of the new Dacia model was made in France, by
Figure 4. Automobile Dacia – organization of production
Losange Renault. Renault Technology Roumanie is the largest
Source: The authors
Renault engineering center located outside France, as follows:
in Mioveni, where technical support is provided for Dacia and its

in Russia, at the Avtoframos plant in Moscow, with an suppliers; in Bucharest, a location where vehicle projects and
annual production of 80,000 units. It was launched on the mechanical projects are developed/adapted; and in Titu, the
Russian market in 2012 as Renault Duster; location where vehicles are tested. The new Duster is equipped

in India, the Renault factory of Chennai produces Duster with new technologies.
for markets such as Great Britain, Ireland, Cyprus and Logistics. The logistics activities within Automobile Dacia
Malta; are the responsibility of the Romanian Logistics Division (see

in Iran: following the conclusion of a contract with Iran, in Figure 5), more precisely, it organizes activities such as the
2017, Renault will manufacture new models of the Duster supply, transportation of parts/components necessary for the
and Symbol in this country. production of the cars in the Mioveni Dacia plants, but also in
other factories of the group that produce vehicles from the
Supply. In the automotive industry, supply costs account for Global Access range (Logan, Sandero, Duster, Lodgy, Dokker)
around 60% of the total cost of car production. Therefore, the internationally (Dacia, 2008).

Figure 5. The Central Logistics Division – the organizational structure

Source: www.daciagroup.com/printpdf/despre-noi/...dacia/directia-logistica-centrala-dacia

The logistics platform in Mioveni organizes the logistics The competitiveness of Automobile Dacia is also affected by
activities related to the inputs/outputs of automotive components/ the lack of adequate infrastructure in Romania. Given that the
finished products, taking into account the optimization of the share of logistical costs in the overall cost is high, transport
flows (reduction of transit time) and the carrying out of the costs have an important bearing on the final price. For example,
logistic activities with minimum of effort (total cost aimed as low the lack of a highway on the Pitesti-Sibiu-Arad section has the
as possible). The transport of finished products and automotive effect of increasing logistics costs by approximately 30 euros for
components is subcontracted to logistics companies. An im- each car delivered on the foreign market (Maure, N. 2015).
portant partner is the French company Gefco. The investments made by the Renault group in Dacia plant
in the interval 2000-2017 were worth about 2.3 billion euros.
3.3. Automobile Dacia Competitiveness These investments were made in new products – new models of
cars, engines, etc. – and in the optimization of the production
If we are to analyze the competitiveness of the Mioveni plant, process (e.g.: product quality improvement, automation, integra-
we should take into account industrial productivity and the tion of new technologies) (Stan, R. 2018).
evolution of salaries. The productivity figure of Automobile Dacia According to the established best practice of the Renault-
is situated, according to company officials, in the average area Nissan Group, the manufacturing projects are allocated to the
at the level of the group. In this context, an important goal of the best-performing plants. In 2017, the Dacia plant produced 44%
company is to increase productivity, and this can be achieved of the Dacia cars, registering a decrease by 2-3%, as compared
through progressive automation – which will keep the level of to the previous year (Grigorescu, D. 2018).
competitiveness of the Mioveni plant as high as that of the Within the Renault-Nissan group, the main competitor of the
Tanger plant in Morocco. According to Dacia representatives, Mioveni plant is the Renault-Nissan factory in Tanger and the
the percentage of automation will increase to 20% by 2020 Renault factory in Chennai, India.
(Maure N., 2015). Thus, this will ensure, on the one hand, a
quality increase and, on the other hand, an improvement in the
Reanult-Nissan plant in Tanger. Morocco is the second
working conditions. As regards the evolution of salaries, they country with respect to Dacia car production, five core
registered a steady increase, with a much faster rate of growth. models of Dacia being produced here. The strengths of
Compared to the Tanger plant, the average salary in Mioveni is the Tanger plant are: lower labor costs, halved as com-
more than double. pared to those of the Romanian plant, and the superior

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infrastructure, the plant being located near the port Business, 12th Edition, Pearson Publisher, Prentice Hall.
(Autopromag, 2014). [6] Dobre, S. (2018). Industria automotive a depăşit 40 de miliarde de

Renault plant in Chennai – wherefrom the Duster model lei. Continental este pe primul loc, Available at: <http://www.turnul
is sent to the Great Britain; Duster is produced with the sfatului.ro/2018/07/04/industria-automotive-depasit-40-de-miliarde-de-
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