AutoBeta(AutoBeta.net)02/22 Report--

Renault, France's largest carmaker, is considering cutting production at its factories in South Korea, according to foreign media reports.

Previously, Renault's business unit in South Korea was facing the possibility of a sharp reduction in production, and Renault officials also sent an official spokesman to respond, saying that if Renault Samsung union workers insist on strike, the future distribution problem is not known.

According to past Renault official developments, the model Renault cut production in South Korea is the Rogue sport utility vehicle jointly developed with Nissan. Renault has an 80 per cent stake in Renault Samsung, which produced 107000 vehicles at the plant in 2018, accounting for nearly 52 per cent of the cumulative production capacity for the year.

Renault's response could be a useful move to ease the local strike. If the strike of South Korea's Renault Samsung union continues, the factory will lose its contract in October, affecting Renault Samsung's jobs. It is understood that the closure of Hyundai's plant in Gwangju has had a diversified negative impact on the local economy and employment, and South Korea's automobile industry has been severely hit after the local car companies announced the factory closure. According to statistics, workers at Renault Samsung have gone on strike for 136 hours since October last year, resulting in losses of 140 billion won ($124 million).

Judging from the negative impact of the current strike, after the new leader of the umbrella organization, which is close to Hyundai auto workers, said that it would not give in to the local trade union, the Renault Samsung union also said it would step up its strike. the strike is expected to last for another six or seven months.

South Korea, once an important market for world automakers to invest, is now tired because of the internal and external troubles in its own car market, which will make the Korean auto industry face lower tariffs from Japan and tariffs imposed by the United States.

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