SOUTH KOREA: Renault Samsung to slow production again
Renault Samsung is to idle its plant in Busan for five days to reduce inventory as it battles slow sales.
The company said that, after halting production for one day last Friday, it will take holidays on Mondays and Fridays from the end of this week, operating the plant only on Tuesdays, Wednesdays and Thursdays this month.
Renault Samsung has seen its domestic sales plunge 38.3% in the first five months of this year. It sold 6,200 cars in January but demand dropped to 4,600 units in May.
The decision to slow production was also triggered by a 20% drop in exports led by the crisis in the eurozone which accounts for 20% of the carmaker's total exports.
Renault Samsung halted its assembly line for 10 days last December because of excess inventory, restoring normal operations during weekdays from January, but suspended production for four days each month in April and May.