Renault Samsung closes its sole plant for 2 weeks amid sales slump

SEOUL, Dec. 10 (Yonhap) -- The local unit of French automaker Renault SA said Wednesday it will keep its sole plant in South Korea closed for two weeks amid a sharp decline in sales.
Renault Samsung Motors Corp. closed its plant in Busan, 453 kilometers southeast
of Seoul, from Wednesday to Saturday and will keep it closed for another eight
days from Dec. 24, company officials said.
It's the first time that Renault Samsung has idled its plant since Renault
acquired a 80.1 percent stake in September 2000 from the former auto unit of
Samsung Group, South Korea's largest family-run business conglomerate.
The plant produces SM7, SM5 sedans, SM3 small cars and QM5 sport-utility vehicles.
"This measure is a temporary shutdown to reduce inventories," said an official at
Renault Samsung, South Korea's second-smallest automaker.
Last month, Renault Samsung suffered a massive 30.6 percent decline in auto sales.
Renault Samsung sold a total of 11,302 units in November with domestic sales
declining 19.2 percent to 6,001 units and exports plummeting 40.2 percent to
5,301 vehicles.
The plant shutdown comes as Renault Samsung is moving to cut jobs through an
early retirement program as part of the French parent company's efforts to reduce
costs.
Renault Samsung officials did not clarify how many jobs the company would slash,
but indicated some 600 senior office workers opted to take the early retirement
program.
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