SEOUL, Mar. 27 (Korea Bizwire) — Renault Samsung Motors Corp., amid prolonged strikes after failing to reach a labor collective agreement, is concerned that the recent crisis will have an impact on its consignment production of Nissan cars.
Nissan Motor Co. told Renault Samsung recently that it wants to reduce the yearly production quota of the Rogue, an SUV model for the North American market currently being produced at Renault Samsung’s Busan Plant, to 60,000 cars.
Renault Samsung has been producing 80,000 Rogues each year after concluding a memorandum of understanding with Nissan in September 2014.
Nissan, considering the instability at the Busan Plant as well as anticipating a slowdown in Rogue sales due to the model’s old age, has asked Renault Samsung to decrease production by 25 percent.
Now, it is inevitable that the operation rate of Renault Samsung’s plants will drop even further.
“We are currently discussing with Nissan on the monthly production quota for Rogue,” said Renault Samsung.
“The prolonged strike has been impacting our production lines. We are at the stage of proposing shutting down our plants to reduce relevant costs borne by our partners.”
Renault Samsung is focusing efforts to export a new crossover utility vehicle that will be produced at the Busan plant.
Kevin Lee (firstname.lastname@example.org)