South Korea’s Renault Samsung Motors announced it had suspended production at its only plant due to the global shortage of semiconductors.
The automaker, 80%-owned by Renault, said it was halting production at its Busan plant in the south of the country for two days this week.
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This is the first time the automaker has had to halt production because of the global chip shortage.
A number of plant stoppages have taken place this year due mainly to continued strike action over wages with the company yet to reach a wage agreement with unions for 2020.
The automaker’s global sales fell by over 17% to 55,926 vehicles in the first half of 2021 after dropping by 35% to 116,166 units in 2020, amid ballooning losses.
In January the company announced plans to cut 40% of executive jobs and cut the pay of those remaining by 20%, while also offering early retirement.
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