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.
Go deeper with GlobalData
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.
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
