Renault Samsung Busan Plant to Halt Operations for Four Days Starting the 11th

by Woo Sooyoun

Published 08 Feb.2020 12:36(KST)

[Asia Economy Reporter Suyeon Woo] Due to supply issues of Chinese-made parts caused by the novel coronavirus infection (Wuhan pneumonia), Renault Samsung Motors' Busan plant will temporarily halt operations for four days starting from the 11th.

According to foreign media and the automotive industry on the 7th (local time), the French Renault Group announced that it will suspend operations at the Busan plant for four days starting from the 11th due to supply problems of Chinese-made parts.

Earlier, Renault Samsung had stated on the 5th that it was considering a 2-3 day suspension of operations starting around the 11th, when the inventory of 'wiring harness' parts supplied from China is expected to be depleted.

More than 80% of the 'wiring harness' supplied to the domestic automobile industry is produced in China, and due to the impact of the coronavirus, Chinese production plants have halted operations, causing delays in domestic parts supply.

Due to the nature of wiring harness parts, which have a short inventory cycle of about 1-2 weeks, supply disruptions emerged first, leading to temporary suspension of operations at domestic automakers such as Hyundai Kia Motors and Ssangyong Motor starting this week.