Busan factory manufacturing cost’double in Spain’
Ranked 17th out of 19 factories in the group
Restructuring such as hopeful retirement needs to be implemented
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Renault Samsung Motors’ largest shareholder, Renault Group’s top executive, expressed concern over the high production costs of Renault Samsung’s Busan plant and warned, “If we do not keep our promise to improve our competitiveness, we will find new methods.” This is interpreted as a warning to the Renault Samsung union that has entered the strike process and that if restructuring such as hopeful retirement is not promoted smoothly, it is possible to consider withdrawal from the Korean market.
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According to Renault Samsung on the 9th, vice chairman Jose Vicente de los Mosos, general manager of the manufacturing and supply of Renault Group, said in a video message sent to employees of the Busan plant that day, “The manufacturing cost of the Busan plant is twice as high as the capture produced in Spain.” He pointed out, “We need urgent improvement.”
Vice Chairman Mosos said, “When I visited the Busan plant last year, we promised to improve our competitiveness to secure the export volume of New Arcana (XM3) to Europe. Believe in that promise, we persuaded Renault Group’s top management to convince the Busan plant of New Arcana Europe We decided to produce,” he said. “But the promise was not fulfilled.”
The Renault Group has even unveiled the production competitiveness of the Busan plant. The Busan plant ranked 10th in production competitiveness among 19 plants in the Renault Group.
In particular, the score in the cost category was low, with the factory manufacturing cost score, which is a major factor in production competitiveness, ranked 17th out of 19 last year. Vice Chairman Mosos said, “If the manufacturing cost of the factory is twice that of the European factory and transportation costs are added, the employees of the Busan factory will feel that Korean production is not suitable,” said Mosos. “The Busan factory is using New Arcana at the same level of factory production cost as Spain. It must be produced, and this is the responsibility that the Busan plant must comply with.”
He warned, “Because the survival plan of the Busan plant is a way to increase competitiveness, we must proceed.” He warned, “If this promise is not kept, we will find a new method.”
Earlier this year, Renault Samsung announced the’Survival Plan’ with main contents such as △40% reduction in executives, 20% reduction in wages for remaining executives, and △hopeful retirement for all employees. Renault-Samsung’s union is going on strike, saying “strong regret for the incompetent management”.
/ Reporter Park Hanshin [email protected]
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