Dacia and Ford have halted vehicle manufacturing at their Romanian facilities until August 19. This disruption stems from a regional energy crisis triggered by extreme drought and record-low water levels in the Danube River.
The August 19 deadline for Dacia and Ford
Prime Minister Ilie Bolojan announced on Monday that assembly lines at major car and van plants in Romania must pause operations until August 19. According to the report, this government-mandated halt is a direct response to severe electricity shortages that have already forced the shutdown of nuclear reactors across the country.
The production freeze hits two major hubs: the Ford Otosan assembly plant in Craiova and the Dacia facility in Mioveni. At the Craiova plant, which employs approximately 6,500 people, production has stopped for the Transit Courier, the Tourneo Courier, and the Puma crossover—the latter of which has been the top-selling new car in Britain for three years. Meanwhile, Dacia's primary 355-hectare facility in Mioveni, which employs over 6,000 staff and typically produces a vehicle every 55 seconds, has suspended the manufacture of its Duster and Bigster SUVs.
How 10cm of water in Budapest paralyzed power grids
The energy crisis is being driven by a catastrophic drop in the water levels of the Danube River, which is essential for cooling nuclear reactors. As reported, persistent heatwaves with temperatures exceeding 38C (100F) and a lack of rainfall have pushed the river to historic lows. in Budapest, Hungary, water levels were measured at approximately 10cm on Monday, shattering the previous all-time low of 33cm recorded in 2018.
Because nuclear plants cannot operate safely without sufficient cooling water,the region is facing a systemic power failure. this environmental collapse creates a vicious cycle: the extreme heat increases the demand for electricity and water just as the primary means of generating that power—nuclear energy—is being throttled by the drought.
The Paks plant's 240-megawatt struggle and the risk to Audi and BMW
The crisis extends beyond Romania into Hungary, where the Soviet-built Paks nuclear power plant is facing its most severe challenge in 44 years. on Monday, the Paks facility was producing only 240 megawatts of power, a staggering drop from its usual 2,000-megawatt output. While Hungarian Prime Minister Péter Magyar stated that engineers managed to keep the final operating turbine running temporarily, he warned that a full power-down remained likely.
This instability threatens a wider swath of the European automotive industry.. If the Paks plant fails entirely, the resulting power outages could disrupt other major manufacturers operating in Hungary, including Audi, BMW, Mercedes-Benz, and Suzuki. Even the electric bus factory operated by BYD is listed as being at risk, suggesting that the transition to electric vehicles does not insulate manufacturers from the fragility of the local energy grid.
The missing contingency plans for 12,500 affected workers
While the government has set a restart date,several critical questions remain unanswered.. the report does not specify whether the 6,500 workers at Ford Otosan or the 6 ,000 employees at Dacia's Mioveni plant will receive full pay during the forced hiatus or if the companies will utilize government subsidies to cover the gap.
Furthermore, it remains unclear how Ford and Dacia intend to recover the lost volume of the Puma and Duster models once lines restart. With no significant rainfall forecast to raise the Danube's levels, there is no guarantee that the August 19 deadline will be met or that the energy grid will be stable enough to support full-scale industrial production.
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