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Renault Samsung workers asked to quit

Industry news

The South Korean unit of French auto giant Renault says it will offer some employees voluntary retirement as sluggish sales continue to squeeze its margins.

In the seven months to July, Renault Samsung Motor's sales fell 34 percent from a year earlier to 93 919. Analysts cited a lack of new models and stiff competition from South Korea's dominant Hyundai-Kia group.

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This undated photo released on July 20, 2012 by Renault-Samsung Motors shows a general view of the exterior of its automobile assembly plant in the southern port city of Busan. Renault-Nissan Alliance will invest 160 million USD to roll out Nissan models at its South Korean unit, the French automaking group said. AFP PHOTO / HO / Renault-Samsung Motors ---- EDITORS NOTE ---- RESTRICTED TO EDITORIAL USE MANDATORY CREDIT "AFP PHOTO / HO / Renault-Samsung Motors" NO MARKETING NO ADVERTISING CAMPAIGNS - DISTRIBUTED AS A SERVICE TO CLIENTS

Employees who take voluntary retirement will get two years' salary, two years of education fees for children and other allowances, the company says, without saying how many jobs it wants to shed.

Renault Samsung has been shutting down its sole plant for several days a month since December. The factory in the southern port of Busan has an annual production capacity of 300 000 vehicles.

In July the Renault-Nissan Alliance promised to invest $160 million (R1.3 billion) to roll out Nissan models at the Busan plant from 2014. - AFP

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