Renault Samsung to trim executives, pay amid losses

[Photo by Renault Samsung Motors Co.]

Renault Samsung Motors Co. is slashing 40 percent of executives and 20 percent in the salaries of surviving executives after output and shipments have sharply fallen due to reduced consignment from its French parent.

The company had about 50 in executive payroll early last year.

The latest austerity measures are part of the company¡¯s efforts to cope with the challenging times from a serious dent on its auto exports and balance sheets.

Renault Samsung last year released six new models and sold total 95,939 vehicles in the Korean market, gaining 10.5 percent from a year ago and becoming the third biggest seller for the first time in a decade in the domestic market.

Exports, however, shriveled 77.7 percent on year to total 20,227 units due to the discontinued production of Nissan Rogue, which had made up the bulk of its work. It shipped out only 4,563 units of Rogue in 2020, plunging from 69,880 units a year earlier.

Renault Samsung now is spurring efforts to cover the void from Rogue with its new XM3 compact SUV, released last year.

The latest decision to reduce the number of executives is expected to affect the resumed talks between Renault Samsung¡¯s management and union over collective bargaining terms for 2020. The two parties have failed to reach an agreement since the beginning of the talks about a year ago, with the latest sixth round in September last year. The latest talks resumed on Thursday.

[¨Ï Maeil Business Newspaper & mk.co.kr, All rights reserved]