Renault SA has informed staff at Renault Samsung Motors in South Korea the corporation needs to ramp up output and cut production prices in buy to stay afloat.
Group’s govt vice president in cost of production and source chain, Jose Vicente de Los Mozos, built the responses in a online video connect with with staff at the company’s eighty one%-owned South Korean subsidiary’s Busan plant this week.
The South Korean automaker claimed a 35% fall in global car gross sales last year to 116,166 units owing primarily to plunging abroad gross sales adhering to the discontinuation of export orders for the Rogue SUV from Nissan Motor.
The corporation last thirty day period declared an crisis value chopping programme, including a voluntary early retirement package deal, administration redundancies and white collar income cuts to aid reverse last year’s heavy economic losses.
Last week Renault Samsung’s unionised staff voted in favour of strike action to demand greater wages and in protest at the company’s early retirement programme.
Last thirty day period the corporation began shipping and delivery the new XM3 SUV to Europe, wherever it is marketed as the Renault Arkana.
According to community experiences citing a community corporation govt, Renault Samsung last year pledged to strengthen productivity at the Busan plant in buy to protected export orders to Europe for the XM3. The resource stated Renault at the time experienced agreed to allocate most of the XM3’s global gross sales to the Busan plant, only to backtrack afterwards owing to its very low productivity.
The govt added “the Busan plant’s XM3 production prices for each device are two times as high as at Renault’s Spanish plant, which helps make the Captur SUV (which is based on the similar platform). This plainly displays that the Busan plant lags significantly guiding and the difficulty should be tackled instantly”.