Toronto, Ontario -- July 9, 2019
Romanian engineering may not be well known around the world, but that may soon change. The Eastern European nation's largest OEM -- Dacia -- is out-competing many of its rivals in Western Europe.
In the U.K., where overall vehicle sales have plummetted, Dacia has seen a record increase in its own. This June, Britons bought five percent fewer vehicles than June of 2018. The up-and-coming OEM, however, saw its own numbers rise by 46 percent.
Freed from Communism 30 years ago, Romania has seen an increase in the standard of living and infrastructural reforms that may make it the next seat of power in the auto manufacturing world.
With a more educated workforce willing to work for lower wages than in Western Europe, the country has also benefited from membership in the European Union's free trade and movement of peoples.
This would not be the first time an up-and-coming economy was able to swipe business away from more established hubs of auto manufacturing. In the early 1970s, Americans were initially dubious of the quality of Japanese manufactured vehicles. By the 1990s, it was generally accepted that Japanese OEMs provided better value and quality to North American consumers.
Investors' faith in the Boyd Group income fund has remained undaunted despite news last week that the Winnipeg-based company had been attacked by ransomware. The company's prompt announcement of the attack, and steady assurances to investors appear to have protected the company from serious market repercussions.
Currently trading about $171-per-share, the company's stock is trading near record levels.
Last year, share prices were around $120. This year, the company has experienced a steep, steady rise in value. Part of this investor confidence may come as a result of the firm's popularity with investment analysts and columnists.
Bad news at BASF
German chemical giant BASF is cutting 6,000 jobs as part of a cost-saving initiative that aims to save the company $440 million.
The cuts represent approximately five percent of the company's 122,000-person workforce. Half of the jobs lost will come from Germany, while it remains unclear where the other cuts will fall.
The cuts come as several major German firms announce similar job-cutting strategies. A few hours prior, Deutsche Bank sent more than 18,000 employees home.
Last year, Bayer--one of BASF's largest competitors--announced job cuts affecting 10 percent of its workforce.