Renault Samsung to cut production by 20% in April

Renault Samsung Motors Co. announced Wednesday that it will cut output by 20 percent during April due to a parts shortage caused by the disasters in Japan.

Renault Samsung, which stopped extra production after working hours and Saturday production on March 18, said its sole plant in Busan has been experiencing shortages in some engines and transmission supplied by Japanese firms.

Renault Samsung said that despite the efforts of an emergency response team, the situation in Japan has affected the operations of its plant, forcing it to introduce the additional measure to slow production.

According to the company, it has been reviewing overseas suppliers for their capacity to meet orders and has been working with officials from Renault Nissan Purchasing Organization, Renault Supplier Chain and Alliance Logistics to minimize the impact of the situation, since March 11, when the earthquake and tsunami struck Japan.

The company said that extra-hours and Saturday production will continue to be halted, and that production will be resumed at normal levels once parts suppliers’ operations are normalized.

The company said that with the production cut, it may have difficulties in fully meeting the demand in April.

By Choi He-suk (cheesuk@heraldcorp.com)