Receive our newsletter – data, insights and analysis delivered to you
  1. News
January 8, 2021

Renault Samsung to cut executive jobs, salaries

Renault Samsung Motors said it would cut management staff and salaries as part of an emergency cost cutting programme due to its weak financial performance last year.

By bcusack

Renault Samsung Motors said it would cut management staff and salaries as part of an emergency cost cutting programme due to its weak financial performance last year.

A spokesman said it plans to cut the number of executive positions at the company by 40% to 30 while salaries will also be cut by 20%.

It is also mulling offering voluntary retirement to its employees.

The South Korean automaker, owned 81% by Renault, reported a 35% drop in global vehicle sales last year to 116,166 units, due mainly to plunging overseas sales following the discontinuation of Nissan Motor export orders for the Rogue SUV

The company was forced to suspend production at its Busan plant in the south for long periods in the fourth quarter to control inventory.

It hopes volume will be boosted this year once it begins exporting the XM3 SUV as a Renault branded model to Europe.

Content from our partners
Collaboration: the key to designing better EV battery packs
Navigating the lithium battery value chain
Teamwork: Making the EV dream reality

Topics in this article: ,
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Monday. The industry's most comprehensive news and information delivered every quarter.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU