Renault Samsung Motors Considers Closing Some Direct Service Centers

[Image source=Yonhap News]

[Asia Economy Reporter Kiho Sung] As the automotive industry faces a downturn due to the novel coronavirus disease (COVID-19), Renault Samsung Motors is reportedly considering various management improvement measures, including the closure of some of its 12 directly operated service centers.

According to the automotive industry on the 11th, Renault Samsung Motors is reviewing plans to close some of its 12 directly operated service centers.

A Renault Samsung official stated, "It is true that we are reviewing various options to improve profitability," adding, "However, nothing has been decided yet."

Currently, Renault Samsung Motors operates 460 directly operated and partner service points nationwide. Among these, 12 are directly operated service centers. If closures proceed, employees at the affected service centers are expected to be reassigned to other departments.

Renault Samsung Motors' contract to produce the Nissan Rogue, which was consigned up to 100,000 units annually, ended last March. Since then, the company has faced difficulties due to the failure to secure follow-up orders. The consigned production of the Nissan Rogue accounted for 49.7% of the production volume at the Busan plant.

Additionally, the newly launched compact sport utility vehicle (SUV) XM3 is performing well in the domestic market and is expected to boost exports. However, due to the COVID-19 situation, demand has sharply declined in the European and North American markets, increasing uncertainty.

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