Renault Samsung to Slash Production in Busan
26 September, 2019
Renault Samsung will downsize production volume at its plant in Busan by 25 percent from Oct. 7 amid a devastating plunge in demand.
The automaker last week told labor representatives that it will cut assembly-line output from 60 to 45 cars per hour due to a decline in sales. That will reduce monthly average production at the plant from 20,000 to 15,000 cars and cost 400 of its 1,800 assembly-line jobs.
Workers can apply for voluntary retirement by Sept. 27.
Renault Samsung had already warned staff of downsizing when orders for Nissan Rogue SUVs made there plunged from 100,000 to 70,000 cars earlier this year.
Amid strong opposition from the labor union, the deadline for downsizing has not yet been set and may be adjusted depending on export conditions and order volume from the Renault headquarters.
"So far the number of staff who applied for voluntary retirement is nowhere near 400," said a source at Renault Samsung. "We are negotiating with the union about what to do with workers who have to be made redundant."
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