Romania’s auto industry loses 18,000 jobs as European orders weaken

Employment falls to a 14-year low

Romania’s automotive industry is losing an average of about 1,200 employees a month as lower production and shrinking orders from its main European markets force manufacturers and suppliers to cut capacity. Antena 3 reported that the workforce had fallen to 132,000 by the end of April 2026, its lowest level since 2012.

The contraction has reversed much of the expansion recorded after the financial crisis. Employment increased from approximately 113,000 in 2010 to more than 206,000 at its 2018 peak. Data compiled by Termene.ro and cited by Jurnalul show that the sector has since lost about 73,000 jobs. More than 18,000 positions disappeared between January 2025 and April 2026, a decline of nearly 12% from the roughly 150,000 employees recorded at the start of that period.

The pace has been uneven but persistent. The industry lost 1,800 employees in July 2025 and 3,100 in January 2026, the sharpest monthly reduction in the period covered by the data. Losses slowed to 600 in February and 300 in March before accelerating to 1,300 in April.

Component suppliers exposed to European production cuts

Romania’s exposure extends beyond final vehicle assembly. Much of the domestic industry produces wiring harnesses, seats, electronic systems and cast parts for large European automakers. Antena 3 noted that production cuts in Stuttgart, Munich or Wolfsburg therefore translate directly into fewer orders and jobs at Romanian suppliers. Germany is particularly important to the sector.

Production indicators show that the weakness is spreading from employment to output. In 2022 and 2023, Romanian automotive production stood 10% to 17% above the 2021 average and helped offset stagnation elsewhere in manufacturing. At the start of 2026, however, the automotive production index fell to 91.2 against the 2021 average, below the broader manufacturing index of 97.5.

Companies are also contending with higher energy and labor costs and competition from countries with cheaper workforces. Adrian Sandu, secretary-general of the Romanian Automobile Manufacturers Association, told Antena 3 that the industry had faced overlapping shocks from the pandemic, the semiconductor shortage, the Russia-Ukraine conflict and rising energy prices. He also pointed to the European market’s 2035 zero-carbon-emissions requirement as a reason companies are regrouping to remain competitive.

European and Chinese demand shape the outlook

The Romanian downturn is connected to broader pressure on European automakers. Citing Bloomberg, Jurnalul reported that second-quarter sales of BMW and Mini brands in China fell 30%, while Volkswagen Group deliveries there declined 37%. Local manufacturers led by BYD continue to gain ground in electric vehicles. Porsche and Mercedes-Benz have also cited weaker Chinese demand, high European energy and labor costs, and US import tariffs.

European groups are responding with cost reductions. Volkswagen is preparing to cut its model range by as much as 50%, although broader layoffs and German plant closures had not received supervisory board approval in the form presented. BMW has lowered its 2026 financial outlook and plans to accelerate cost cutting. Renault Group’s chief executive has described the company’s Romanian operations as facing one of the biggest challenges in their history.

There are some offsets: BMW reported stronger sales in the United States and Europe, while Volkswagen increased second-quarter deliveries in Europe and North America. Volkswagen’s European electric-vehicle order book was more than 50% larger than at the end of last year, and BMW said the electric iX3 was approaching 100,000 orders. For Romania, however, the immediate risks remain substantial. If the recent employment trend continues, the workforce could fall below 130,000 by year-end, while Jurnalul reported a risk that annual vehicle production could drop below 500,000 units.