Renault Executive Vice Chairman: "If Busan Plant Fails to Keep Competitiveness Improvement Promise, We Will Seek New Methods"

"Survival Plan, Must Proceed"

[Asia Economy Reporter Yu Je-hoon] As Renault Samsung Motors continues labor-management conflicts over wages, collective bargaining, and voluntary retirement, the Renault Group Executive Vice Chairman warned on the 9th, urging the implementation of Renault Samsung's 'Survival Plan,' stating, "If the promise that the Busan plant must fulfill is not kept, we will seek new methods."

Jose Vicente de Los Mozos, Executive Vice Chairman of Renault Group, conveyed in a message to the employees of Renault Samsung's Busan plant that "We trusted the Busan plant employees and decided to produce the New Arkana (XM3 export vehicle), but we are facing serious problems. The Busan plant's Survival Plan is a top priority survival plan for itself," he said.

Vice Chairman de Los Mozos first stated, "During my visit to the Busan plant last year, the plant promised to enhance competitiveness to secure the European export volume of the New Arkana," adding, "Believing in that promise, I persuaded the Renault Group's top management to decide on producing the New Arkana's European volume at the Busan plant."

He continued, "As of the end of last year, that promise has not been fulfilled," emphasizing, "The manufacturing cost per vehicle at the Busan plant is twice that of the Captur produced in Spain. This indicates a competitiveness issue at the Busan plant and is an urgent matter requiring improvement."

Vice Chairman de Los Mozos also presented three key goals to the Busan plant: highest quality, cost reduction, and on-time delivery. He said, "We understand that the Busan plant faces high transportation costs due to geographical limitations, but if the manufacturing cost per vehicle is twice that of the European plants and transportation costs are added, producing vehicles in Korea and delivering them to Europe may not be appropriate, which the employees are well aware of," stressing again, "The New Arkana must be produced at the Busan plant with manufacturing costs at the same level as the Captur made in Spain and launched in the European market, and this is a responsibility the Busan plant must uphold."

Vice Chairman de Los Mozos further stated, "We are going through unprecedented difficult times, but this is not easy for anyone, not just the Busan plant," and added, "The guidelines are clear. We must be dedicated to adhering to these guidelines."

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