Bucharest - Renault SA's Romanian plant will halt production for three weeks as the country's car market slows, a news agency reported Monday.

Employees at Dacia, which makes budget-priced compact cars mostly for export, will get 85 per cent of pay during the November 20-December 7 break, the Mediafax agency said.

From January through October, Dacia's production ran at 17 per cent above last year's level. But production recently was halted for four days because of slowing demand.

Romania's car market shrank by 30 per cent in October compared to the same month in 2007, hampered by higher interest rates on consumer loans, Dacia said. Exports were 20 per cent higher.

The automaker has cut its 2008 production target to 270,000 vehicles from 310,000. (dpa)