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.
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.