Renault Samsung to Slice Night Shifts due to Losses Mount
04 March, 2021
Renault Samsung is minded to prevent night shifts from next week after recording its initial loss found in 11 years this past year and losing the majority of its production orders.
The automaker already started taking applications for early retirement previous month, and around 100 workers have applied up to now. If not enough personnel sign up voluntarily, the business is likely to furlough its 4,200 employees on rotation.
The automaker's production plant in Busan created 260,000 cars a year until 2017. But last year it made merely 110,000, triggering Renault Samsung a W70 billion deficit. Its production target because of this year is only 100,000 vehicles.
The crisis were only available in September 2019, when the production contract for the mid-sized Nissan Rogue SUV ended. It accounted for 50 % of the Busan plant's gross annual output. The provider defer allocating another version for development there when personnel there went on strike in 2019 and 2020.
Renault headquarters in France finally assigned the Busan plant the small XM3 SUV for export to Europe, but production volume is only thirty percent of the Rogue's.
The French automaker recently announced restructuring plans to lessen its annual global output from four million to 3.1 million cars. It designated the Busan plant as you of its least successful overseas operations.
There are rumors that Renault is considering taking out of Korea entirely, raising fears that the country’s other foreign-owned automakers could follow suit.
GM suffered cumulative losses of around W3 trillion during the last seven years, and Mahindra, which owns Ssangyong, suffered W1.8 trillion in losses during the last 13 years. The three make use of around 300,000 persons in Korea.
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