Renault “If the competitiveness of the Busan plant is not improved, I will find a new method”
Reporter Kim Young-han [email protected]
Input: 2021-02-09 15:33:31Revision: 2021-02-09 19:08:21Published: 2021-02-09 15:34:19 (p. 14)
View of Renault Samsung Motors’ Busan factory in Gangseo-gu, Busan. Busan Ilbo DB
Renault Samsung Motors’ majority shareholder, Renault Group’s highest-ranking executive, sent a warning message to Renault Samsung Motors, which is on a strike, and pressured. He warned Renault Samsung Motors executives and staff members through a video message, “If we do not keep our promise to improve our competitiveness, we will find a new way”. The industry view is that the’new method’ was not specifically mentioned, but the sale may have been in mind.
Jose Vicent de los Mojos, vice chairman of Renault Group’s manufacturing and supply executive, said in a video message sent to employees at the Busan plant on the 9th, “The factory manufacturing cost of the Busan plant is twice as high as the capture produced in Spain. There is a problem with the competitiveness of the factory and urgent improvement is needed.”
Through video message from Vice Chairman Mozos
Warning speech to Renault Samsung Motors employees
Pointing out manufacturing cost reduction and quality improvement
Labor unions come up with specific plans for struggle
Vice Chairman Ross Mojos also said, “When I visited the Busan plant last year, the Busan plant promised to improve its competitiveness to secure New Arcana (XM3 European export name) exports to Europe. It was decided to produce the new Arcana in the Busan plant in Europe.” He added, “As of the end of last year, the promise has not been fulfilled.”
Vice Chairman Ross Mojos also ordered that XM3 achieve three goals: top quality, reduced production costs, and compliance with production deadlines for the successful entry into Europe. In this regard, Renault Samsung Motors is targeting overseas markets by shipping 750 units of XM3, the first export volume to Europe, at the end of December last year. Renault Samsung Motors, which saw an operating deficit due to a sharp decline in exports last year, is on a strike while expecting the success of XM3 exports. Vice-Chairman Ross Mojos on that day, mentioning compliance with the delivery date, means that there should be no strike.
On December 25 last year, the first European exports of Renault Samsung’s small SUV, the XM3, are waiting for shipment. Provided by Renault Samsung Motors
He first expressed confidence, saying, “The quality level of the Busan plant is the best and we trust the employees of the Busan plant for quality.”
At the same time, Vice Chairman Ross Mojos said, “If the manufacturing cost of the factory is twice that of the European factory and transportation costs are added, the Busan factory employees will feel that it may not be appropriate to produce a vehicle in Korea and deliver it to Europe.” “It is the responsibility of the Busan factory to produce new arcanas and release them to the European market at the same level of factory manufacturing cost as the captures made in Spain.”
Vice Chairman Ross Mojos added, “I believe in the employees of the Busan plant and decided to produce New Arcana, but today we are facing serious problems.” He added, “The survival plan and strategy of the Busan plant is the top priority survival plan for ourselves.”
In January, Renault Group announced’Renolution’, which shifts to a profit-oriented management strategy, designating Korea as a region that needs to strengthen profitability along with Latin America and India. Renault Samsung Motors also started emergency management at the beginning of the year, and came up with a survival plan with the focus of reducing executives 40%, reducing executives’ wages by 20%, and retiring all employees.
Lastly, he said, “The guidelines are clear and we have to be committed to complying with these guidelines. It is a difficult time not only for the Busan plant, but also for everyone else, and if this promise that the Busan plant must fulfill, we will find new ways to do it. Left a warning.
Inside and outside of Renault Samsung Motors, the interpretation of the’new method’ mentioned by Vice Chairman Ross Mojos is divided. Vice Chairman Ross Mojos did not elaborate on a detailed explanation, but some interpreted that it could be abandonment or sale of the Busan factory.
On the other hand, the Renault Samsung Motors union, which passed the strike by voting for and against the industrial action on the 1st and 2nd, is scheduled to hold an extraordinary general meeting and a delegates meeting on this day to decide whether to strike.
Reporter Kim Young-han [email protected]