Export Volume Decline... Renault Samsung Busan Plant Operates Only 3 Days This Week

[Image source=Yonhap News]

[Asia Economy Reporter Kiho Sung] Renault Samsung Motors is entering short-time work to adjust production due to a decrease in export volume.

Renault Samsung Motors announced on the 20th that it will halt production line operations at its Busan plant for two days on the 21st and 22nd of this week, and on Friday the 29th of next week.

A Renault Samsung Motors official stated, "Rather than operating the factory loosely, this is a measure to improve productivity through concentrated work," adding, "Normal work will be carried out starting in June."

The closure of the main plant was decided last week through negotiations between labor and management.

The reason for this closure appears to be a decrease in export volume and some supply disruptions of parts. The Busan plant of Renault Samsung Motors had been producing 100,000 units annually under consignment for the Nissan Rogue. However, this contract ended in March, leading to a significant decrease in export volume. The Nissan Rogue was the main model responsible for 77% of the Busan plant's exports last year.

Renault Samsung Motors is placing its hopes on the compact sport utility vehicle (SUV) XM3, which was launched in March. The XM3 has gained great popularity immediately after its release. Despite the impact of the novel coronavirus disease (COVID-19), 11,914 units were sold in the two months following its launch.

However, due to the termination of the Nissan Rogue consignment, last month's export volume recorded about 2,000 units, which is less than one-third of the same month last year.

This content was produced with the assistance of AI translation services.