Renault Samsung is to idle its Busan plant for 10 days this month as weak domestic demand has pushed up inventory levels.
The company said the plant will return to normal operations next month but started to reduce production from Monday this week to cut down inventory.
Go deeper with GlobalData
This comes as consumer confidence in South Korean wanes due to high oil prices, volatility in the stock markets and uncertainties stemming from the eurozone debt crisis.
Renault Samsung suffered a 30% year-on-year slump in domestic sales in the January-November period, compared with the industry’s 1.1% gain. Its new SM7 large sedan has not sold as well as expected.
Last month, sales in South Korea fell 35% to 7,759 units while exports dropped 24% to 9,509 units.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
