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Renault May Cut Production in S. Korea
Renault SA says its Renault Samsung Motors Co. unit will likely slash production in South Korea unless months of labor strikes end soon.
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Renault SA says its Renault Samsung Motors Co. unit will likely slash production in South Korea unless months of labor strikes end soon, The Nikkei reports.
About half the company’s output from its factory in Busan consists of Rogue small SUVs for alliance partner Nissan Motor Co. But the plant’s current supply contract with Nissan will expire in September.
A video message to workers earlier this month warns that Renault’s ability to renew the contract will be jeopardized if strikes continue. The Nikkei says Renault Samsung’s hourly workers, who haven’t struck the company in four years, have staged 136 hours of mini-walkouts since October.
Renault Samsung’s future also has been clouded by shifts in trade policy that have eroded its attraction as a low-tariff source of exported vehicles to Europe and the U.S. As a result, future Rogue production could shift to Japan and the U.S.
The Nikkei says undeterred workers vow to step up their strike activity.
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