|
The five Korean automakers have been cutting production as the recession bites, with Renault Samsung announcing it will suspend plant operations following a similar decision by GM Daewoo. As a result, all five will likely produce 70,000 to 80,000 fewer cars this month, a mere quarter of their monthly average of 320,000 cars.
They are closing plants for a certain period of time as well as shortening regular working hours and operation days this month. So far, they had merely cut overtime or extra work.
Renault Samsung on Monday said it will shorten operating days from five to four a week beginning early December, and completely suspend operations between Dec. 24 and Jan. 1. The automaker hopes to cut back production by 30 to 40 percent with the measure.
The decision came in a meeting on Nov. 28, and about 70 major subcontractors in Busan, Gimhae and Changwon have been notified.
Meanwhile, GM Daewoo has stopped operations at its Bupyeong Plant no. 2, which produces the Tosca and Winstorm models, from Monday until Jan. 4. December production will likely shrink by about half.
Hyundai Motor said it will cut four hours each from the eight-hour day shift and eight-hour night shift at its Ulsan plant no. 2, which produces the Santa Fe and Veracruz. This is the first time since the financial crisis in 1997 that Hyundai-Kia has drastically cut regular hours.
Due to a sharp fall in the sales of SUVs, Ssangyong Motor has been granting all blue and white-collar workers paid leave. Ssangyong will set its next year production goal at 80,000 to 90,000 cars, just one-third of capacity.
(englishnews@chosun.com )
|
