[서울=뉴스핌] Reporter Jung Han = It is reported that Renault Samsung Motors sent a letter to the employees’ families containing the contents of the’survival plan’ such as hopeful retirement and restructuring.
According to industry sources on the 16th, a letter in the name of Renault Samsung Motors CEO Dominic Signora was sent to the employees’ homes on the 5th. In the two-page letter, the reason for implementing the’Survival Plan’, which has been in place since last January, and management results were included.
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In a letter, CEO Dominic Signora said, “I would like to explain to the family members of the executives and employees why the company had no choice but to choose the difficult path of survival plan based on the current reality of the company.”
“Last year, both domestic and export combined sales and production at the Busan plant recorded the lowest level since 2004. We introduced six new cars in the domestic market, but we did not reach the target of 100,000 units.” Last year’s performance turned into a deficit for the first time in eight years since 2012.”
In addition, “the amount of fixed expenses including labor costs has not changed, so the company’s losses have been further aggravated. In 2020 alone, about 200 billion won of cash held by the company was exhausted. The start of 2021 is also bad. Last month’s domestic market It only sold 3534 units in the company and achieved the lowest sales performance in January since 2016.”
In addition, “due to sluggish sales, high fixed costs, and rising parts prices, the company’s cash has been reduced by about 100 billion won over the past month alone, and the urgency for drastic cost reduction is growing,” he said. “To improve various inefficiency and high cost structures Currently, the Renault Group is undergoing restructuring in each country, including Korea.”
He cited the goal to achieve for the survival plan ▲ enhancing the value of Renault Samsung’s products in the domestic market ▲ securing the highest competitiveness of the XM3 European export model ▲ restructuring.
“Before the official implementation of the survival plan, Renault Samsung Motors reduced 40% of all executives and 20% wages for the remaining executives. It is very difficult as a CEO to inform the family of employees of the company’s difficult situation. It’s hard, but I hope it helps you understand the survival plan.”
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Regarding the background of sending the letter, an official from Renault Samsung said, “I am sending a letter with the intention of explaining the survival plan to the family members of the executives and employees,” and “Since the survival plan was implemented from January 21st, and it was held until the end of February, In order to explain accordingly, a letter was sent in early February. It is not intended to target the Lunar New Year holiday,” he explained.
Previously, Renault Samsung Motors received a video message from the headquarters inviting the Busan plant to strengthen production competitiveness and complete the survival plan.
Jose Vicente de Los Mozos, Vice Chairman of Manufacturing and Supply of Renault Group, said through a video on the 9th to the employees of the Busan factory, “The promise that the Busan factory must fulfill (complying with delivery of XM3 exports) is kept. If you don’t lose, you will find a new way.”
Meanwhile, the Renault-Samsung union obtained legal rights through a vote for or against the strike on the 1st and 2nd, but it has not been able to determine the specific level or timing of the strike. The sixth round of negotiations is ahead, and the date is undecided.